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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.

NHTSA awards Audi A3 and S3 sedans five stars

The Audi A3 and S3 sedans aced the New Car Assessment Program tests run by the National Highway Traffic Safety Administration, each scoring five stars overall. The A3 sedan adds this latest five-star rating to its Top Safety Pick+ award bestowed upon it by the Insurance Institute for Highway Safety earlier this year, and Audi says it's the only Euro premium luxury compact to do that double. The only place either car dropped a single star was for a male driver in the frontal barrier test and in the rollover test. It's clear from the lengthening list of top marks – and its list of safety technology – that it's among the safest sedans you can buy. Featured Gallery 2015 Audi A3: Review View 36 Photos News Source: National Highway Traffic Safety Administration [1], [2] via Audi World Government/Legal Audi Safety Sedan crash test audi s3

Audi recalls 2013-2014 S6 and S7 models over fuel line leak

If you've been driving a late model Audi S6 or S7, first of all, good for you. Secondly, you should be expecting a call from your local dealer as the Volkswagen Group and the National Highway Traffic Safety Administration have issued a recall.
The problem apparently involves a potential leak in the fuel line, which, as any mechanic or McGuyver fan could tell you, is not such a good thing. As NHTSA points out, it "may result in a fire."
The recall involves 3,594 vehicles in these United States, specifically model-year 2013 and 2014 Audi S6 and S7 models equipped with the 4.0-liter twin-turbo V8. (It does not, however, seem to affect the S8 or any of the Bentleys that are powered by the same engine.) Owners of said cars can expect to be contacted regarding how the problem will be fixed. In the meantime you can read the official notice below.