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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.

French probe alleges 2 million PSA cars had engine cheats

PARIS — A French investigation into alleged emissions cheating by PSA Group found that suspect software had been used on almost 2 million vehicles sold by the maker of Peugeot and Citroen cars, Le Monde reported on Friday. Paris-based PSA denies any use of fraudulent engine software, a spokesman said in response to the newspaper report, which sent PSA shares sharply lower. The stock was down 4.4 percent at 17.78 euros as of 1019 GMT. So-called "defeat devices" restrict exhaust output of toxic nitrogen oxides (NOx) under regulatory test conditions while letting emissions far exceed legal limits in real-world driving. In February, PSA became the fourth carmaker to be referred to French prosecutors by the country's DGCCRF watchdog over suspected emissions test-cheating, after Volkswagen, Renault and Fiat Chrysler. PSA's engineering chief acknowledged at the time that emissions treatment in the group's diesels was deliberately reduced at higher temperatures to improve fuel efficiency and carbon dioxide (CO2) emissions in out-of-town driving, where NOx output is considered less critical. According to Le Monde, an internal PSA document obtained by DGCCRF investigators includes discussion of the need to "make the 'defeat device' aspect less obvious and visible." However PSA insists there is nothing fraudulent or illegal about its engine calibrations. "PSA denies any fraud and firmly reaffirms the pertinence of its technology decisions," the company said on Friday. Reporting by Laurence FrostRelated Video: Image Credit: Getty Government/Legal Green Volkswagen Citroen Peugeot Emissions Diesel Vehicles dieselgate volkswagen diesel

Volkswagen names new chief designer for Bentley

The Volkswagen Group has named one of its own to head up the design department at its Bentley division. The role now falls to Stefan Sielaff, who has been with the group (off and on) since 1990. Sielaff is principally an interior designer, but has been tasked with setting up numerous overall design offices for Volkswagen and Audi over the years. In his new capacity he'll be reporting to the group's chief engineer Rolf Frech (and oddly not to Bentley chief Wolfgang Durheimer), but at the same time, Sielaff will retain his role as head of interior design for the entire VW group, reporting to its chief designer Walter de Silva. Sielaff replaces Luc Donckerwolke, who has headed up Bentley design since 2012 and is leaving the company. We'll be on the lookout to see where Donckerwolke lands next. Crewe/Wolfsburg, 04 June 2015 Stefan Sielaff to head design at the Bentley brand • Sielaff also responsible for Group Interior Design Strategy Stefan Sielaff (53), currently Head of the Volkswagen Design Center in Potsdam, will assume responsibility for design at the Bentley brand effective July 1, 2015 in addition to his present post as Head of Group Interior Design Strategy. As Director of Design at Bentley, Sielaff succeeds Luc Donckerwolke (49), who held this function since 2012. Stefan Sielaff joined the Volkswagen Group in 1990, beginning his career in the interior design department at Audi. From 1995 the design graduate was entrusted with setting up the Group's Design Center Europe in Spain. In 1997 he was placed in charge of the Design Studio in Munich and was appointed Head of Audi Interior Design in the same year. In 2003 Sielaff moved to DaimlerChrysler as Design Director of the Interior Competence Center, returning to the Volkswagen Group in 2006 to become Head of Audi Design before being appointed Head of the Volkswagen Design Center in Potsdam und Head of Group Interior Design Strategy in 2012. In his new function as Director of Design at Bentley, Sielaff reports to Rolf Frech, Board Member for Engineering. In his function as Head of Group Interior Design Strategy he continues to report to Walter de Silva, Head of Group Design. Luc Donckerwolke has decided to leave the company. De Silva said: "Luc Donckerwolke has played a key role in the design of various Group brands. We would like to thank him for his work." Related Video: News Source: Volkswagen Design/Style Hirings/Firings/Layoffs Bentley Volkswagen