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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.

Bugatti considering electric four-seater as second model

Bugatti's long-rumored additional model could run on electricity rather than gasoline, according to a recent report. The company is tentatively planning a downward expansion without diluting its image. Downward is a relative term when spoken in the same sentence as Bugatti. The company isn't interested in chasing volume with an alternative to the Volkswagen GTI. Instead, Bloomberg wrote it's envisioning an electric four-seater priced between 500,000 and one million euros, sums that represent about $555,000 and $1.1 million, respectively. Bugatti CEO Stephan Winkelmann told the publication that convincing parent company Volkswagen to fund the model requires a "hard fight," however. "The industry is changing fundamentally, and we have to address what opportunities there are to develop Bugatti as a brand going forward," he explained. Releasing a second, cheaper model would mark a dramatic shift for the prestigious automaker, which has stuck to a one-core-model strategy since its renaissance in 1998. The EV could bump its annual output from about 100 to 600 cars. Winkelmann was the driving force behind the Urus when he ran Lamborghini, which has led to speculation that Bugatti's second model will be an SUV. Speaking to Autoblog, a spokesperson for the company again doused cold water on the rumors. "It would not be an SUV," we learned. The representative stressed nothing has been decided yet, so it's still too early to tell precisely when the second model would enter production if it receives the proverbial green light for production. Less than 100 Chiron build slots remain available, but the French company has its work cut out for the coming years. It will deliver the first of 40 planned examples of the Divo in 2020, send the one-off La Voiture Noire to its mysterious new home in 2021, and build the first of 10 Centodiecis (pictured) in 2022. Additional Chiron variants (like the record-breaking 300+) aren't out of the question, either. The idea of an electric Bugatti isn't without precedence. In 1931, company founder Ettore Bugatti built a battery-powered runabout named Type 56 to drive on his property. It was never meant to be a production car, but requests from wealthy clients (including Belgian king Leopold III, who wanted one for his wife Astrid) convinced Bugatti to make 10 examples between 1931 and 1936. Four remain in 2019, including one in original condition that Autoblog got the opportunity to drive in 2018.

Here's today's round of auto plant closures in response to coronavirus

More automakers have shuttered factories, as businesses everywhere work to slow the spread of the Covid-19 coronavirus — and as the pandemic slows sales and disrupts parts supply chains. On Friday, the following closures were announced: • Volvo will close its factories in Sweden and the United States from March 26 to April 14. Volvo's U.S. facility, in Charleston, South Carolina, makes the S60 sedan. Its assembly plant in Torslanda, Sweden, turns out the XC90, SC60, and V90. Other Swedish facilities make engines and component parts. A Volvo factory in Ghent, Belgium, that builds the XC40 and V60 closed earlier this week and is expected to remain offline until April 6. Volvo's four factories in China have been reopened after a shutdown earlier this year. • Jaguar Land Rover announced that it will suspend production at its assembly plants in the UK over the coming week. The shutdown is expected to last until April 20. Elsewhere, production continues at the company's factories in India and Brazil, and JLR's joint-venture plant in China reopened at the end of February. • Bentley is closing its factory in Crewe, England, for four weeks, effective today. • Bugatti has put its atelier in Molsheim, France, on hiatus. No date was given for when assembly of its supercars might resume. • Mercedes-Benz on Monday will shut down its SUV factory in Alabama and its van assembly plant in South Carolina. Both will remain closed for a minimum of two weeks. Tesla yesterday revealed that it will suspend operations at its Fremont, California, vehicle assembly plant next week, on order from local officials there. Yesterday's factory closure announcements also included the U.S. assembly plants for Toyota (until April 6), Volkswagen (through March 29), Subaru (through March 29), and Hyundai (no time period specified). They join GM, Ford, Chrysler, Honda, Nissan, and Harley-Davidson, which earlier this week announced the suspension of production at their facilities. Plants/Manufacturing Bentley Bugatti Jaguar Land Rover Mercedes-Benz Volvo coronavirus