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U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

BMW 2 Series Coupe priced from $33,025* ahead of Detroit debut

BMW is definitely going to have its hands full at next month's Detroit Auto Show. The big news might be the debut of the M3 and M4, which were previewed in our Deep Dive, but joining those performance cars under the bright lights will be the all-new 2015 BMW 2 Series Coupe.
While we already know most of the details about the 2 Series and its available M Performance parts, BMW has now announced that the Coupe will go on sale in the first quarter of next year with a starting price of $33,025 (*plus $925 for destination) for the base 228i. This price is about $1,500 more than the current 1 Series Coupe, which starts at $31,500, while the M235i's starting price of $44,025 is almost $500 more than the existing 135is Coupe. There is still no indication as to when we'll see 2 Series Convertible unveiled.
In addition to new M cars and the 2 Series, BMW's display will also reveal another new color-theme package for the Z4. Last year we saw the Hyper Orange package, and this year will give us the Ivory White Burnt Sienna Z4 available in an exclusive Sparkling Brown Metallic exterior paint color. Scroll down for the full press release of production vehicles BMW has planned to showcase at Detroit's Cobo Hall next month.

What would you drive in 1985?

Bereft of live baseball games to watch, I've turned to the good ship YouTube to watch classic games. While watching the 1985 American League Championship Series last night, several of the broadcast's commercials made its way into the original VHS recording, including those for cars. "Only 8.8% financing on a 1985 Ford Tempo!" What a deal! That got me thinking: what would I drive in 1985?  It sure wouldn't be a Tempo. Or an IROC-Z, for that matter, despite what my Photoshopped 1980s self would indicate in the picture above. I posed this question to my fellow Autobloggists. Only one could actually drive back then, I was only 2 and a few editors weren't even close to being born. Here are our choices, which were simply made with the edict of "Come on, man, be realistic."  West Coast Editor James Riswick: OK, I started this, I'll go first. I like coupes today, so I'm pretty sure I'd drive one back then. I definitely don't see myself driving some badge-engineered GM thing from 1985, and although a Honda Prelude has a certain appeal, I must admit that something European would likely be in order. A BMW maybe? No, I'm too much a contrarian for that. The answer is therefore a 1985 Saab 900 Turbo 3-Door, which is not only a coupe but a hatchback, too. If I could scrounge up enough Reagan-era bucks for the ultra-cool SPG model, that would be rad. The 900 Turbo pictured, which was for auction on Bring a Trailer a few years ago, came with plum-colored Bokhara Red, and you're damn sure I would've had me one of those. Nevermind 1985, I'd probably drive this thing today.   Associate Editor Byron Hurd: I'm going to go with the 1985.5 Ford Mustang SVO, AKA the turbocharged Fox Body that everybody remembers but nobody drives. The mid-year update to the SVO bumped the power up from 175 ponies (yeah, yeah) to 205, making it almost as powerful (on paper, anyway) as the V8-powered GT models offered in the same time frame. I chose this particular car because it's a bit of a time capsule and, simultaneously, a reminder that all things are cyclical. Here we are, 35 years later, and 2.3-liter turbocharged Mustangs are a thing again. Who would have guessed?