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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.

2016 Audi S6

Minutes after spending time in the refreshed 2016 Audi A6 in Germany, we were tossed the keys to its enthusiast-tuned sibling, the Audi S6. In similar manner to its lesser brethren, the S6 has also been updated for the 2016 model year with a new look, a boost in power and additional technology.
Its aggressive demeanor is heralded by a redesigned signature single-frame grille, resculpted bumpers (front and rear) and new lights on both ends - the Matrix LED headlamps fitted to our European test car are impressive, but the US DOT has ensure that we won't see them (pun intended) for now. The cabin appointments have gone even further upscale, and the enhanced MMI infotainment system now runs more fluidly thanks to a faster NVIDIA graphics chip. The primary instrument cluster, facing the operator, has been redesigned to offer its own duplicate display to ease the driver's workload.
Under the hood, the twin-turbocharged 4.0-liter TFSI V8 is bumped to 450 horsepower (a gain of 30), while torque remains the same at 406 pound-feet. The standard gearbox is Audi's seven-speed S-tronic dual-clutch unit, sending power to all four wheels through the automaker's rear-biased Quattro permanent all-wheel-drive system.

Audi promises next A8 on sale by year's end, LED Matrix lamps to be available [w/video]

Audi has just released details about its new Matrix LED headlamps, but just as illuminating as the new lighting technology is confirmation that the next A8 will appear "on the market at the end of 2013." While Audi is calling the model new, expectations - and the spy shots above - suggest more of a traditional mid-cycle refresh.
Audi says that its new A8 Matrix lights are comprised of 25 high-beam LEDs, clustered in groups of five paired with reflectors. Unlike traditional automatic high-beam setups, the Matrix array is so precise that it "blanks out light that would shine directly onto oncoming and preceding vehicles" while continuing to use full high-beam power on other sections of the road and shoulder not occupied by other vehicles. Further, the camera- and electronic brain-governed system can dim or extinguish LEDs as necessary to deal with traffic. The active system also differs from today's adaptive headlamps by not requiring servo motors to direct light, yet they can still function as cornering headlamps - ones that can predict a road's trajectory because they are linked with the car's GPS system. Interestingly, the system also works with Audi's optional night vision system. When the latter detects a pedestrian in the dark, it automatically flashes a batch of LEDs to put both the driver and pedestrian on notice about each others' presence.
Only one problem in all of this trick lighting business: they aren't legal here in the US, at least not yet. Audi and other automakers are currently petitioning the National Highway Traffic Safety Administration, trying to sell the government agency on the technology's safety benefits. For the moment, Matrix headlamps are likely to remain forbidden fruit, but you can check them out and see what you might be missing in the video below. As for the 2015 A8, we're guessing it'll surface at the Frankfurt Motor Show in September.