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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.

Jaguar design boss admits X-Type was a mistake

History has a way of repeating itself, especially in the auto industry. When Jaguar was owned by Ford, the British brand attempted to field a competitor for the BMW 3 Series, called the X-Type. Based on the bones of a Ford Mondeo, it aped the styling of Jaguar's flagship model, the XJ, while borrowing liberally from the Ford parts bin. That was 2001.
Now, in 2013, Jaguar is planning a new 3 Series challenger based on the platform previewed by the C-X17 Concept, while Ford is attempting to take the latest Mondeo upmarket. The moves have both brands recognizing where, why, and how the X-Type failed. "It didn't look mature or powerful or anything. It was just a car," Jaguar's current head of advanced design, Julian Thomson, told PistonHeads. Basing the X-Type on a front-drive car while giving it styling that was meant for a rear-driver lead to proportions that "were plainly wrong," Thomson told PH. Ford's European head of quality, Gunnar Herrmann, added that the X-Type was "a fake Jaguar, because every piece I touch is Ford."
For what it's worth, the X-Type's successor in the segment will sport rear-drive, with plenty of input from Ian Callum. Thomson described the new model, which would challenge the 3 Series as having, "Big wheels right to the ends of the car, low bonnet, short overhangs, very low cabins." Sounds good to us.

Jaguar names its 3 Series-fighter XE, packs it with Ingenium engines

Jaguar is committed to emerging from the fringes of the luxury car market and into the mainstream. Just take a look at where it was a couple of decades ago and where it is now: In the 1980s, it had essentially two product lines, the XJ sedan and XJ-S coupe/convertible), and now it's got the XK coupe and convertible, the XJ sedan, the XF sedan and wagon and the F-Type coupe and roadster. But it's not about to stop there.
Coventry knows that if it's going to take on the German and Japanese heavyweights, it's going to need a compact sports sedan, and it's not about to repeat the mistake that was the X-Type. To that end, it's long been rumored to be developing a rival to the likes of the BMW 3 Series and Mercedes-Benz C-Class - it just hasn't given us much to go on. But that changes right here and now.
At the Geneva Motor Show, Jaguar has confirmed the imminent arrival of its new sports sedan, and along with the teaser image above, has given us some juicy details. For one, it'll be called the XE - fitting nicely alongside its big brothers the XF and XJ in Jaguar's growing sedan lineup. For another, it'll hit markets overseas in 2015 and arrive here in the United States in 2016.