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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 Pullman limo, C-Class Hybrid coming to Geneva

Mercedes-Benz is preparing to show the pinnacles of its engineering and luxury prowess at the 2015 Geneva Motor Show in March. Towering in physical size among these new vehicles is the long-awaited debut of the S-Class Pullman, according to Reuters. If you think the nearly $200,000 Mercedes-Maybach S600 (pictured above) is the ultimate in opulence available on Mercedes' flagship sedan, think again. The Pullman is the true top dog at a rumored 21-feet long and at a price of around $1 million for the armored version. Earlier patent photos suggest what this behemoth might look like. The driver reportedly sits in a partitioned cabin up front, and the plutocratic passengers are nestled in two facing rows of seats in the rest of the extremely long body. It's possible that Mercedes might not even build the Pullman in-house and leave the duty up to Brabus. However, there's also a rumor that the massive model might not be offered in the US. According to Reuters, the German company is also proving that it can be green by displaying the C-Class Plug-in Hybrid in Geneva. If Mercedes' display of luxury and efficiency don't strike your fancy, then the automaker is bringing some performance with its future Mercedes-AMG GT GT3 racer to the Swiss show.

2014 Mercedes-Benz B-Class ED has 87-mile range, 84 MPGe

Well, that extra weight had to be felt somewhere. With Mercedes-Benz getting ready to start US sales of its B-Class Electric drive this summer, the big question was how well its range would stack up against other electric vehicles sold in the States. Turns out, the Benz is a bit of a juice hog. Let's say up front that the 87-mile single-charge range of the Mercedes-Benz actually stacks up nicely against its competition, since that distance puts the new model right in line with the Nissan Leaf and BMW i3 (we'll ignore the Tesla Model S for a second, here). You can find the numbers at the US Department of Energy's FuelEconomy website. As far as miles per gallon equivalent ratings, though, the Benz's steel frame makes it come up short, as it's about 1,300 pounds heavier than the carbon-fiber-body i3 and about 600 pounds heavier than the Leaf. The B-Class EV has a bigger battery than the i3 or the Leaf (36 kWh compared to 22 kWh for the i3 and 24 kWh for the Leaf) and that's one reason the car gets an 84 MPGe rating, which is about 26 percent less than the Leaf's and 32 percent less than the i3's. But at least the local utility companies will be happy. Mercedes-Benz priced the 177-horsepower B-Class ED in April at $41,450, or $100 more than the i3. Check out Autoblog's First Drive impressions here.