2012 Volkswagen Gti Base on 2040-cars

Auto blog

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Chrysler slows minivan production, hasn't built VW Routan this year

Chrysler has slowed production of its Town and Country and Dodge Grand Caravan minivans this week, Automotive News reports. The Windsor, Ontario plant will cut its three shifts from eight hours each to four hours each in an effort "to align production with market demand," a Chrysler spokesperson told AN. Chrysler also builds the closely related Routan minivan for Volkswagen at its Ontario facility, but has not built a single example thus far in 2013.
Sales of Chrysler's minivans fell 15 percent for the first two months of 2013, and a large part of that has to do with the 26-percent drop of the Grand Caravan alone (the T&C was only down by one percent). According to Automotive News data, as of March 1, Chrysler had an unsold inventory of 24,713 Town and Country models and 18,547 Grand Caravans - a 69- and 43-day supply, respectively.
"No sense running full speed now, then have a lot of vehicles sitting around a few months down the line," Chrysler spokeswoman Jodi Tinson told AN. Full production is expected to resume again on March 18.

Hyundai tops VW and Buick in China, survey says

You may be aware of the long-time competition in China between Volkswagen and Buick, but another brand apparently should be in that conversation too: Hyundai. In a recently published annual consumer survey, the Korean company actually took the top spot to beat out its German and American rivals in second and third, respectively. The results were part of the China Brand Power Index that interviewed 11,500 people around the nation and was paid for by the country's Ministry of Industry and Information Technology. While Hyundai proved popular with voters, its sales haven't necessarily shown that yet. According to Bloomberg, the brand had falling numbers in China for the first quarter of the year. Even Ford outsold the South Korean automaker in the same period, despite scoring lower on the survey. Meanwhile, Audi ranked as the populace's favorite luxury brand, which is hardly a surprise given the Four Rings' strong sales in China. In January alone the automaker saw a 15-percent boost in volume there. Parent company VW's strong performance was somewhat more surprising, though. State media severely criticized the German automaker in March, and customers protested last year for the allegedly poor handling of a recall.