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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-AMG GT and C63 to serve as F1 safety, medical cars

Mercedes has spent nearly 20 years providing the safety and medical cars for Formula 1, so it was hardly a shock when the company announced that the new Mercedes-AMG GT and C63 AMG S Estate would serve as ushers in the F1 circus. The two turbocharged monsters replace the old SLS AMG safety car and C63 AMG wagon medical car, which have served in one trim or another since 2010 and 2008, respectively. The biggest change for either car is, of course, the lightbar. It's been mounted atop a carbon-fiber hoop on the AMG GT that Mercedes says optimizes airflow to that big rear wing. Meanwhile, the location of the lights was confirmed via wind tunnel testing. In the cockpit, two iPads allow the AMG GT's passenger, fuel analyst Peter Tibbetts, to monitor the race's world feed while also keeping an eye on race data. The tablets stay connected via an in-car, wireless internet connection. Changes for the C63 S wagon are less extensive. It gets a lightbar and the usual signaling systems in the headlights and taillights, while the cargo compartment includes both a respirator and a defibrillator, to manage more serious medical emergencies. As with the AMG GT, the C63 is finished in F1's traditional silver safety/medical car livery. Beyond these changes, both vehicles are just as potent as those that can be purchased at dealers. Both cars feature a 4.0-liter, 510-horsepower, twin-turbocharged V8, while a seven-speed AMG Speedshift transmission dispatches the grunt with lightning-quick shifts. So equipped, the AMG GT will hit 60 in 3.8 seconds and the C63 can get there in 4.1 seconds. Check out the full gallery of both cars, decked out in their F1 liveries, available up top. Related Video: Mercedes-AMG GT S and C 63 S in action for the 2015 Formula 1® season: Maximum safety, maximum performance Affalterbach, Mar 06, 2015 Baptism of fire on the race track: The GT S and the C 63 S – the new high-performance cars from Mercedes-AMG - provide for maximum safety in the 2015 FIA Formula One World Championship™. At the first Grand Prix in Melbourne, Australia (12 to 15 March 2015) the GT S will debut on the race track as the Official Safety Car of the FIA Formula One World Championship™. As the Official Medical Car of the FIA Formula One World Championship™, the C 63 S Estate will be on hand to provide fast emergency medical care. Mercedes-AMG has been active continuously at the pinnacle of motorsport since 1996.

Bosch builds an infotainment system that just might not suck

As far as we've come with in-car infotainment and interfaces over the past decade or so, we still have a long way to go — as most current systems show. Whether it's high-end brands like Mercedes-Benz with its kludgy COMAND system, which we hope will be replaced with the MBUX platform revealed at CES, or more mainstream vehicles like Hondas (with their frustrating, knobless Display Audio interface), getting the kind of content and ease of use in the car that we're used to having on other connected devices is far too complex and sometimes costly. While Apple and Google have tried to ride to the rescue with CarPlay and Android Auto, respectively, they're limited solutions. No automaker or tech supplier has been able to deliver an easy, economical, flexible and non-distracting infotainment solution. But Bosch could be closing in on this elusive goal, given the digital cockpit concept demo I recently received at CES. Displayed in a Cadillac Escalade, the concept featured five interconnected color screens: one in the instrument cluster, two in the center console, and two more in the front-seat headrest for second-row passengers. The digital cockpit concept demo had cool features such as haptic-feedback touch-screen controls that created an edge-like feeling similar to a physical button, facial recognition to confirm driver credentials, and the intelligence to know the location of a phone in the car to lock it out to keep the driver from texting. The most significant aspect of the Bosch digital cockpit concept wasn't visible — but shows the company's vision for a future of seamless, convenient, cost-effective and safe in-car infotainment. It's powered by a single electronic control unit (ECU) that can simultaneously run multiple operating systems and also separates vehicle and infotainment controls for critical safety and cybersecurity reasons. Most modern cars can have as many as 100 separate ECUs, Philip Ventimiglia, product manager for Bosch Car Multimedia North America, explained at CES, and several just for infotainment functions. "The goal is to reduce that to about 10 so that we can save cost throughout the vehicle and enable new technologies," he added. "OEMs want to put more technology into cars, but it costs money," Ventimiglia said.