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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.

2016 BMW X1 will be second model on company's front-drive platform

BMW is putting a lot of its chips on the success of its forthcoming front-wheel drive models, and it's making a big bet on the company's future in hoping that customers will accept them. Its front-driving UKL platform is underpinning not just the current crop of Minis but a host of BMW vehicles too. The rollout starts with the 2 Series Active Tourer in Europe later this year. But the Bavarian brand confirms to Automotive News Europe that the next one is the X1 crossover, slated to come to Europe next June. It will also be joined by the X2 next summer, confirming earlier rumors about the fashionable CUV's existence.
As the previous spy photos suggest, the X1 is even smaller than the current model, and it supposedly uses the same crop of turbocharged 1.5-liter three-cylinder and 2.0-liter four-cylinder engines as Mini. But according to Automotive News Europe, the little guy is getting an extended, three-row version for the US, Russia and China. Like with the X4 or X6, the X2 shares most of the mechanical parts with its more conventional-looking sibling but features sleeker styling.
To make all of these UKL-based models possible, BMW is sharing development among them as much as is practical. According to Automotive News Europe, the next generations of the Mini Countryman, Clubman, X1 and X2 share the same electrical systems, drivetrains and more. Adding in the Active Tourer and still mysterious Family Active Sports Tourer to the mix, and the result is a big gamble that needs to go Bimmer's way.

Weekly Recap: Toyota wants cars to be your 'close friends' around 2020

Toyota confirmed plans this week to launch autonomous technology in its production cars around 2020. The automaker's version is called Highway Teammate, and it's one element of a broader mobility strategy that includes vehicles communicating with each other and the grid. "Toyota believes that interactions between drivers and cars should mirror those between close friends who share a common purpose, sometimes watching over each other and sometimes helping each other out," the company said in a statement. That sounds utopian, and perhaps a bit cheesy, but it's an acknowledgment that autonomous driving requires more than technology developed in a vacuum. Toyota is looking at its research in a broader context, and dubs its overall strategy the Mobility Teammate Concept. Highway Teammate is the first step. Its test vehicle is a modified Lexus GS, which uses road-mapping data and external sensors to merge or exit highways, change lanes, and maintain safe distances during driving. It's operated on the Shuto Expressway in Tokyo. Toyota has been working on autonomous tech since the 1990s, with the goal of providing mobility for older people and the disabled, as well as lowering the frequency of traffic accidents. Toyota's push comes as an early adopter, Nissan, is hedging on its own deadline to implement the autonomous tech by 2020 due to a lack of firm laws governing self-driving cars around the world. Conversely, Volvo took the landmark step of being the first automaker to accept liability for when its cars will operate in autonomous mode, and urged the US government to set federal guidelines to regulate the technology. OTHER NEWS & NOTES 2016 BMW M4 GTS: Your water-injected, turbo-boosted demon BMW is unleashing its most powerful M4 ever, a 493-horsepower special edition that's road legal yet bred for the track. The company is making 700 copies for sale around the world, and 300 of them will come to the United States. The twin-turbocharged 3.0-liter six-cylinder revs to 7,600 rpm and uses a water-injection technology to cool the intake air and lower the compression temperature. BMW says this allows it to wring more power out of the inline six. The car also uses carbon-fiber reinforced plastic for the roof, hood, engine compartment strut brace, drive shaft, and rear spoiler to reduce weight. The M4 features BMW's organic light-emitting diode taillights, which are said to be an industry first.