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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

Audi CEO's Dieselgate arrest threatens fragile truce among VW stakeholders

FRANKFURT — The arrest and detention of Audi's chief executive forces Volkswagen Group's competing stakeholders to renegotiate the delicate balance of power that has helped keep Audi CEO Rupert Stadler in office. Volkswagen's directors are discussing how to run Audi, its most profitable division, following the arrest of the brand's long-time boss on Monday as part of Germany's investigations into the carmaker's emissions cheating scandal. The supervisory board of Audi, meanwhile, has suspended Stadler and appointed Dutchman Bram Schot as an interim replacement, a source familiar with the matter said on Tuesday. Schot joined the Volkswagen Group in 2011 after having worked as president and CEO of Mercedes-Benz Italia. He has been Audi's board member for sales and marketing since last September. The discussions risk reigniting tensions among VW's controlling Piech and Porsche families, its powerful labor representatives and its home region of Lower Saxony. VW has insisted the development of illegal software, also known as "defeat devices," installed in millions of cars was the work of low-level employees, and that no management board members were involved. U.S. prosecutors have challenged this by indicting VW's former chief executive Martin Winterkorn. Stadler's arrest raises further questions. Audi and VW said on Monday that Stadler was presumed innocent unless proved otherwise. Munich prosecutors detained Stadler to prevent him from obstructing a probe into Audi's emissions cheating, they said on Monday. Stadler is being investigated for suspected fraud and false advertising. Here are the main factors deciding the fate of Audi. Background: Audi's role in Dieselgate Volkswagen Group was plunged into crisis in 2015 after U.S. regulators found Europe's biggest carmaker had equipped cars with software to cheat emissions tests on diesel engines. The technique of using software to detect a pollution test procedure, and to increase the effectiveness of emissions filters to mask pollution levels only during tests, was first developed at Audi. "In designing the defeat device, VW engineers borrowed the original concept of the dual-mode, emissions cycle-beating software from Audi," VW said in its plea agreement with U.S. authorities in January 2017, in which the company agreed to pay a $4.3 billion fine to reach a settlement with U.S. regulators.

Now you can order a Bentley with real stone trim

Order up a new Bentley and you'll have some choices to make. After choosing which model, you'll need to select from over a hundred standard exterior paint colors and a staggering array of trim options – and now, interior stone veneers. Mulliner will now outfit your Bentley with actual stone trim. Now we know what you're probably thinking: stone adds weight. But here's the kicker: Bentley's new stone veneers measure just 0.004 inches thick. That's less than the breadth of a human hair, and (according to the automaker) makes these trim pieces not only very lightweight, but also translucent. The rocks are sourced from quaries in India, cured using fiberglass and resin, and finished by the Mulliner coachbuilding team back at the factory in Crewe, England. Customers will be able to select between a natural finish or in four tints to install on a new Continental or Flying Spur. So if you were hoping for a little extra ballast in your 5,300-lb Bentayga or 6,000-lbs Mulsanne, we're afraid you'll just have to choose a different interior accent. STONE VENEERS BY MULLINER – THE NEXT LEVEL OF MODERN BRITISH LUXURY - Bentley pushes boundaries of cabin luxury with new and rare materials - Lightweight and contemporary feature developed by Mulliner - Four exclusive colours: Galaxy, Autumn White, Terra Red and Copper (Crewe, 04 January, 2016) Bentley Motors' bespoke coach-building division, Mulliner, is introducing the next level of modern British automotive luxury – stone veneers. This innovative interior finish utilises state-of-the-art stone veneer technology to make a luxurious, contemporary feature of a natural product formed over 200 million years. The slate and quartzite stone is sustainably sourced from hand-selected quarries in Rajasthan and Andhra Pradesh, India – a nation with an ancient and rich culture of stone masonry. The sections of stone are split from larger pieces and cured using glass fibre and a bespoke resin. Finally, they are shaped and hand finished by Bentley's world-renowned Mulliner coachbuilding team at the company's headquarters in Crewe, England. The stone surfaces of the veneers are just 0.1 mm thick, meaning that they are both extremely light and translucent, allowing the elegant grain and pattern in the stone to be visible to the interior occupants.