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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.

Audi and Porsche squabble over future product platforms

In the buildup to the 2014 24 Hours of Le Mans, Audi delivered an amusing video that worked on the playful rivalry between the German brand and its favorite frenemy, Porsche. We called it sibling rivalry, and at the time, it may have been just that. But just like sibling rivalries, it's all fun and games until someone gets hurt, and that's just what seems to be about to happen in the formerly peaceful Volkswagen Group family.
A new report from Automobile calls out the growing animosity between Porsche, who is backed up by Bentley, and Audi, whose primary ally is Lamborghini. No blows have actually been thrown, although there is a fair amount of "he said, she said" going on.
As Porsche tells it, for example, the new global fullsize SUV architecture being developed by Audi isn't up to snuff, citing size and structure issues, as well as an inability to accommodate a wide variety of engines.

Audi prices 2014 A8L TDI from $82,500*

During the Los Angeles Auto Show last November, Audi told us that it would be bringing four new diesel-powered models to the United States this year. The first to arrive is the 2014 A8L TDI you see here, and we've now learned that the big oil-sipper will be priced from $82,500, (*excluding $895 for destination).
The whole new range of diesel models will be powered by Audi's 3.0-liter TDI V6, good for 240 horsepower and 406 pound-feet of torque in this application. Of course, Quattro all-wheel drive is standard, and even in the big A8, the diesel grunt will be enough to propel the long-wheelbase flagship to 60 miles per hour in 6.4 seconds (almost a full second slower than the A8 3.0T we reviewed last fall). That said, the A8 TDI should still be a pretty engaging steer, and considering the fact that this thing will reportedly return fuel economy figures of up to 36 miles per gallon on the highway (24 in the city), a slightly slower launch time is well worth it. (The A8 3.0T tops out at 28 mpg highway.)
Elsewhere in the segment, Mercedes-Benz offers a diesel version of its S-Class flagship, retailing for $93,000 and good for fuel economy figures of 21/31 mpg city/highway. By comparison, the A8 TDI seems like a steal, and we'll be interested to see where the forthcoming BMW 7 Series diesel falls into the class of huge oil-burning barges.