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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.

Erebus Motorsport Mercedes E-Class V8 Supercar completes the field [w/videos]

Ford, Holden and Nissan introduced their V8 Supercar challengers a while back. Erebus Motorport, whose racing program got the green light not even 120 days ago, has finally shown off the Mercedes-Benz E-Class racer that will complete this year's field of entries. The first AMG race car ever to be built outside of Germany, it's an Australian-built tube-frame chassis specced to the series' Car of Tomorrow rules, fitted with body panels that channel the E63 AMG.
Supported by AMG Customer Motorsport, the 5.0-liter engine is provided by HWA in Germany, the racing arm of AMG. Regulations dictate that it have roughly 650 horsepower, a redline between 7,000 and 7,500 rpm and a torque curve that matches the parity baseline set for all cars.
Lee Holdsworth, Tim Slade and Maro Engel will drive the three team cars, each with different sponsors. Their first showing will be at the Clipsal 500 on March 3 in Adelaide, here in the US we'll get to see them in May at the Circuit of the Americas. Check out the videos below of the Erebus car starting up at its launch, and footage of all of this year's cars doing pre-season testing on track together.

Aston Martin and Daimler continue talks on SUV project, CEO required

The Aston Martin Lagonda SUV concept revealed at the 2009 Geneva Motor Show didn't earn the plaudits the company is used to when it reveals new models, and it has lived an uncertain life ever since. Thought to have been scrapped along with the entire revival of the Lagonda brand, then thought to have been resurrected due to Chinese, Middle Eastern and Russian demand, another year passed before we heard more definitive talk about an Aston Martin expansion when AutoCar reported that the Lagonda could be built on one of Mercedes-Benz's AMG SUV platforms.
A report in Automotive News Europe indicates plans have gotten serious, its unnamed sources saying that the English carmaker is talking to Daimler "to extend their cooperation to building an SUV." Neither Daimler, Aston Martin nor Investindustrial, the managing partner among Aston Martin's ownership consortium, would comment. But with Investindustrial having pledged to expand the range, competitors like Bentley, Maserati and Lamborghini getting into the SUV racket and clear demand from current and future customers, it's easy to believe Aston Martin is working hard to put the pieces together.
One further potential bump on the road to an Aston SUV is the company's search for a new CEO. Ulrich Bez relinquished to top spot at the company at the end of 2013, and Aston reportedly will not finalize its model strategy without a new CEO in place.