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Mercedes-AMG planning hybrid hypercar?

It used to be that, a few overlapping two-door models aside, Mercedes-Benz and Porsche didn't really compete with one another. That's how the two ended up collaborating on projects like the Mercedes 500 E that put it on the performance sedan map without fear of stepping on each other's toes. But Porsche has grown considerably since then, challenging its Stuttgart neighbor with four-door sedans and crossovers, as well as sports coupes and convertibles. Little wonder, then, that Mercedes has hit back at Porsche with the AMG GT, and there will be many more versions to follow in 911 style. But that may not be the final salvo the Silver Star marque launches at Zuffenhausen. According to the latest bit of speculation and deduction from our friends at Motor Trend, Mercedes-AMG may be planning a hybrid hypercar of its own to take on the Porsche 918 Spyder – not to mention the McLaren P1 and LaFerrari. Solid information is sparse at this point, but after speaking to AMG chief Tobias Moers, MT speculates that the new flagship will likely be mid-engined, with a boosted version of the company's 4.0-liter twin-turbo V8 kicking out between 650 and 700 horsepower, working with a pair of electric motors at the front to deliver tenacious through-the-road all-wheel traction and a combined output in the thousand-horsepower range. There is the possibility, though, that Mercedes could go after the latest hybrid hypercars with a flagship version of its just-launched AMG GT, packing a similar powertrain setup as the ultimate evolution of the breed. Other GT versions will likely soon include a GT3 racing model, a Black Series version and a roadster – following a similar path taken not only by the 911, but also by Benz's previous halo supercars like the SLR McLaren and SLS AMG.

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-AMG Hulks out again with new G63 test

The last time we saw Mercedes-Benz testing its camouflaged, lime-green G63 AMG, it was on the sunny roads of Germany. Perhaps recognizing that this was a tragic waste of its talents, Mercedes has now moved testing of its new brute to the windy, snowy tarmac of Sweden. Besides being a far more suitable environment for its monstrous G-Wagen, Mercedes' arrival in Scandinavia gives us yet another look at its 6x6-inspired updates. Judging by the license plates, this is the exact same vehicle we spotted way back in November, which gave us our original look at the impending arrival of the G's hoisted-up ride height, more aggressively flared fenders and meatier off-road-ready tires. As with our previous report, our spies are still arguing that the next G63 will be fitted with Mercedes' 5.5-liter, twin-turbocharged V8. That means as much as 544 horsepower and 560 pound-feet of torque will be on tap, and it'll all be dispatched via a seven-speed automatic transmission. The next G-Wagen is still on pace for a debut this year, although we still aren't sure where. Forced to put money on it, we'd bet on a European show, likely March's Genevan extravaganza or September's Frankfurt show.