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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.

Hackenberg says next Audi A4 set for Frankfurt debut

The current Audi A4 is among the oldest vehicles in the brand's lineup. Having debuted back in 2008, it's long overdue for an update, and according to our friends at Indian Autos Blog, that'll happen in roughly six months. IAB spoke to Audi research and design chief Ulrich Hackenberg, who indicated that the fifth-generation A4 will be shown at the 2015 Frankfurt Motor Show in September. The new sedan will be unveiled in "a pre-presentation" before the auto show itself, Hackenberg told IAB, adding that "you'll be happy to see it." Information beyond that, though, remains sparse. Based on our previous spy photos, we expect the new A4 to ride on the Volkswagen Group's modular MLB Evo platform that's been stretched to accommodate a larger wheelbase. The styling, meanwhile, will be more evolutionary, inspired in part by the new TT. Expect more on the next-generation A4 as September approaches. Related Video:

Audi S3 with manual transmission still on table for US

The fine folks at Fourtitude recently sat down with Audi of America President Scott Keogh, and among other things, learned that the potent little S3 sedan could be offered with a manual transmission in the United States someday. That sort of sounds like the usual company line to us, but Keogh reportedly said the company is "looking very closely" at adding the manual to the S3, which currently is only available with a dual-clutch automatic.
Fourtitude also brought up the possibility of a hotter RS3 - a vehicle we've seen testing before, as a hatchback. We don't doubt that this more potent compact is already a done deal, but Keogh reportedly mentioned that the sedan will get this treatment. An RS3 for the US? Sign us up, for sure.
Head over to the Audi enthusiast site to read more from their talk with the company's US boss.