2003 Volkswagen Beetle-new Convertible on 2040-cars

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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.

2015 VW Golf R caught getting a flogging on 'Ring

The upcoming version of the Volkswagen Golf R is nearly ready for prime time, if this video of the car flying around the Nürburgring is any indication. The all-wheel-drive R seems to make quick, neat work of the corners we see here, and sounds pretty devilish in the process.
Expectations are that the new Golf R will run a 2.0-liter turbocharged four-cylinder (what else?), tuned to produce even more than the current car's 256 horsepower. (Some sources have indicated outputs as high as 286 horsepower, with 280 pound-feet of torque. It's still not clear if Volkswagen will bring the six-speed dual-clutch transmission to the US-spec Golf R in this next go-round or if we'll stick to having only... eh... the stick.
In either case - watching the video below will only whet your appetite for the new, highest performing member of the Golf family.

Prop-driven VW Beetle hopes to land in Bonneville [w/video]

Sometimes you meet folks who, when they tell you "Hey, I have an idea," your reflex response is to stop what you're doing and tell yourself, "Get ready...." We imagine Mike Niemans is one of those folks, and the idea in question is putting a tank engine on a Type 1 Volkswagen Beetle. Not just any old tank engine - as if there were such a thing when we're talking about putting them in cars - but a 668-cubic-inch, 220-horsepower radial engine built by Continental in 1941 and procured from an M2 tank.
In the image above Nieman is using the tank clutch hub to get the motor set up, but in one of the images below you can see what really belongs back there is: a two-inch, reverse-pitch prop taken from a wind generator. He says there's enough mojo with the propeller action to get the car rolling down the runway like a jet when he gives it gas - and speaking of gas, the engine's been refitted to run on propane.
After a few safety tweaks Nieman's going to take the matte-black Beetle to Bonneville, "put the prop on, let her go and see what happens!" We can't wait to see the video of that. There are two shakedown videos below to get you ready.