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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.

Porsche offering new tire option for Carrera GT

Let's face it: finding new tires for older cars can be challenging if tire manufacturers have stopped carrying the right sizes (this writer went through Hell to find a set of 205/60-13s). But what about tires for low-volume supercars, which use sizes that often won't fit on high-volume production vehicles? The Porsche Carrera GT isn't that old and tires are still available in the correct sizes, but the German automaker has shown its support of keeping them on the road by working with Michelin to give owners yet another tire option. Enter the Carrera GT-specific Pilot Super Sport.
It's common knowledge that tires are one of the most important pieces of the performance puzzle, and Porsche claims that the PSS tires, sized 265/35ZR-19 front and 335/30ZR-20 with Porsche's "N0" rating, will improve the Carrera GT's handling and stability all the way up to its claimed top speed of 205 miles per hour. That's important for a car with razor-sharp handling characteristics. They'll also net drivers a 10-percent increase in fuel economy on regular roads and up to 20 percent on racetracks, Porsche says.
The PSSs use cutting-edge tire technology to harness the Carrera GT's 610-horsepower. They have a dual-compound tread that's different from the inside of the tire to the outside, which, Porsche says, helps steering precision and increases maximum grip. Aramid fibers, which are lightweight but just as strong as steel, are used in the tire's belt to reduce unsprung weight.

Porsche offers detuned Boxster and Cayman 211 in Europe

Looking at a new Porsche Boxster? First of all, we commend you on your choice, because in its latest iteration, the Boxster has sped out from under the shadow of the 911 and into its own. But now to choose: do you get the base model with 265 horsepower, the Boxster S with 315 hp, or the top-of-the-line Boxster GTS with 330 hp? It's a daunting question, considering the $10k+ price gap between each model that you could put into the gas-and-rubber jar. Same goes for the Cayman, albeit with ten more horses across the board. But as if that's not confusing enough, there appears to be another player on the field. (That is, at least, in certain European markets.)
Appearing on the company's Belgian and Norwegian sites are the Boxster 211 and Cayman 211. As you might have guessed, they pack a less substantial 211 horsepower, undercutting what we know as the base models. Instead of using a smaller engine, though, the Boxster and Cayman 211 get the same 2.7-liter boxer six, just with less power.
As a result, they're a bit slower off the line: the Boxster 211 takes between 6.1 and 6.4 seconds to get to 62, depending on exact specifications, compared to the 5.5- to 5.8-second range for the 265-hp Boxster, while the Cayman 211 is quoted at 6.2 seconds versus the 275-hp Cayman's 5.4 to 5.7 seconds. Fuel consumption and emissions, on the other hand (and as you'd expect), are better in the 211. But while Porsche Norway charges around $10k less for the 211 models, Porsche Belgium charges the same for the 211 models as it does for the next most powerful versions (from which they appear to be visually indistinguishable).