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Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

BMW preparing new M4 GTS with water injection

Last month, BMW revealed a new safety car for the MotoGP series. Only instead of just taking one of its production models and giving it some flashing lights, special livery and emergency equipment, the Bavarian automaker used the specially equipped M4 to showcase a new water injection system. And now word has it that the tech is being worked into a new M4 GTS. The system sprays water into the combustion chamber in order to lower the temperature of the air and increase the engine's efficiency, thus allowing it to produce more power without overheating, and relying less on ambient temperatures. It does require refilling a 1.3-gallon water tank in the trunk, though. According to Car and Driver, it's that same system that BMW will be installing in the new M4 GTS, taking the place of previous M3 GTS specials. If precedent is anything to go by, the M4 GTS will also be stripped of excess weight and feature a tighter suspension, stickier tires and more, in order to make BMW's muscle coupe even more hardcore and focused for the track. We could be looking at a debut as early as Pebble Beach in August.

BMW names new head of M division

BMW's performance division has been run by Dr. Friedrich Nitschke since 2011, developing, among other products, the new M3 and M4. But soon the good doctor will be retiring, and BMW has just named his successor.
Taking Nitschke's place as chairman of BMW M GmbH will be Franciscus van Meel (pictured at right), who until recently served as managing director of Audi Quattro GmbH - the rival outfit that makes Ingolstadt's performance models, including the R8 supercar and RS line of performance models.
Van Meel will join BMW on October 1, presumably to learn the ropes from Nitschke before the 59-year-old executive steps down at the end of the year. Back in January, Audi named Heinz Peter Hollwerweger as head of Quattro GmbH and reassigned van Meel to its Beijing R&D center, a role which evidently didn't suit him as well as creating Autobahn-storming German muscle cars.