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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

Volkswagen Group names Paefgen head of classics program

You may remember the name Franz-Josef Paefgen. Until recently, the German engineer and executive was head of both Bentley and Bugatti. Before that he was chief executive of Audi, after working for several years at Ford. He technically "retired" earlier this year, but like the cars he helped create, an executive like Paefgen could never really retire. So it should come as little surprise that the Volkswagen Group has named Dr. Paefgen head of its Classic program.
In his new capacity, Paefgen will oversee the historic automobile activities of the entire VW Group, including those of Volkswagen, Seat, Skoda, Audi, Lamborghini, and of course Bentley and Bugatti. It strikes us as a suitable semi-retirement for the man responsible in no small part for the Bugatti Veyron and Bentley Mulsanne, to name just two, and who was decorated in 2006 by the ACO as the "Spirit of Le Mans" for his contribution to endurance racing. Read the official announcement after the break.

Bentley Continental GT takes off with Breitling Jet Team

Of all the automakers that have co-branding deals in place with watchmakers, the relationship between Breitling and Bentley ranks among the longest-standing. But aviation aficionados will also point out that Breitling – ever the favorite of pilots – also supports a team of aerobatic pilots called the Breitling Jet Team. Now the three have come together to create a special run of luxury automobiles. The Bentley Continental GT Speed Breitling Jet Team Series, as you might have guessed, is based on the Continental GT Speed that stands as the fastest model Bentley has ever offered. Which is a good starting point, because despite the "jet" part of the name, they have not actually put a turbine engine under the hood. Jaguar (among others) has tried that, and it has yet to work out. What sets apart this special series is entirely cosmetic, carried out by Bentley's Mulliner customization department. It has a two-tone paint job of Hallmark and Onyx (which may look purplish in the pictures but the scheme is listed as silver and black in the Bentley catalog), matching the livery on the jets themselves. It's accented with Breitling's signature yellow. The color scheme continues inside, with carbon-fiber trim, more yellow accents, and little thematic Easter eggs throughout. Whether the result looks like a promotional vehicle or a sleek take on the vehicle of choice for every entrepreneur who strikes it big, that's a matter of taste. And if you want to see one up close, you'll have to go to Seattle at the end of July. That's where Bentley will present the only seven examples it will make to their owners. The presentation will be made individually by the pilots at the Boeing Seafair Airshow – but only after what's sure to be the ride of their life on board one of the team's L-39 Albatros jets. BENTLEY CONTINENTAL GT SPEED BREITLING JET TEAM SERIES LIMITED EDITION - Seven limited edition Continental GT Speeds inspired by famed jets - Handcrafted models take Mulliner customisation to new heights - Continental GT Speed is fastest production Bentley ever - Models to debut at Boeing Seafair Airshow, Seattle, July 31 (Crewe, 30 June 2015) Bentley is taking its fusion of luxury and performance to new extremes with the launch of the Continental GT Speed Breitling Jet Team Series. This exclusive series is limited to just seven cars, each inspired by one of the seven Breitling Jets.