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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.

Mercedes teams with Pebble for smartwatch tech

Most automakers have realized by now that a good infotainment system is a must-have feature for many buyers, and have, as a result, invested increasing amounts of time and money developing these technologies. But some automakers are going above and beyond in-car entertainment and navigation technology by focusing on wearable technology as well.
Nissan has emerged as one such company, developing its own alternative to Google Glass and performance-oriented smartwatch. But Mercedes-Benz is also putting itself at the forefront of wearable tech - not by developing competing products to those designed by dedicated tech companies, but by working with them. The German automaker, as we recently reported, is developing its own app for Google Glass, and is now doing the same with smartwatches as well.
Set to be unveiled at the upcoming Consumer Electronics Show in Las Vegas, Mercedes has collaborated with Pebble Technologies to develop the Digital DriveStyle app. The system will display tell its wearer where the car is, whether the doors are locked and if it needs fuel. Inside the car it'll alert the driver to potential hazards coming up on the road, while making functions like re-routing the nav system, controlling the audio system or activating Siri that much easier.

2016 Mercedes-Benz C350 Plug-In Hybrid on sale this fall

The Mercedes-Benz C350 Plug-In Hybrid can go from 0 to 60 miles per hour in less than six seconds and can travel 20 miles in all-electric range. As for the more practical issues related to the new PHEV, well, those details will have to wait a bit longer. The C350 Plug-In Hybrid makes its official debut at the Detroit Auto Show this week. The electrified Mercedes will start US sales this fall as a 2016 model. The sedan's four-cylinder, 1.9-liter, turbocharged gasoline engine will be paired with an electric motor that will deliver a combined 275 horsepower. The car will also have such goodies as regenerative braking and collision-avoidance systems, not to mention a top speed of 130 mph. We're still waiting for the car's estimated fuel economy, of course. Not to mention its sticker price. Spy shots of the C-Class PHEV started popping up in May, as well as reports that the Daimler division was testing prototypes in Germany. Meanwhile, this past summer, Mercedes-Benz started taking payments for the S500 Plug-In Hybrid, the German automaker's first production plug-in vehicle. That model, which started European deliveries last September, can zip from 0 to 60 in about five seconds. It also costs about $146,000.