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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.

BMW reveals updated 2016 Alpina B6 xDrive Gran Coupe

Do you dig the BMW M6 Gran Coupe, but really wanted one with all-wheel drive? We can hardly blame you, considering how well it held up against the Nissan GT-R and Bentley Continental GT in the Australian Outback on a recent episode of Top Gear, despite the disadvantage on driven-wheel count. But that, you see, is where Alpina comes in. The "other M division" offers the a twin-turbo 6 Series Gran Coupe with four-wheel traction – even here in the US – and it's just been upgraded. The 2016 BMW Alpina B6 xDrive Gran Coupe packs a 4.4-liter twin-turbo V8 engine, just like the M6. But whereas the previous B6 packed less power than its factory counterpart, the new one surpasses it. Thanks to a boost by 60 horsepower and 50 pound-feet of torque, the B6 now cranks out 600 hp and 590 lb-ft – which rather impressively bests the M6 by 40 hp and 90 lb-ft. Plus it's driven to all four wheels. The manufacturer says that's good for a tenth of a second off the 0-60 time, now quoted at 3.6 seconds, with a top speed pegged at 200 miles per hour, making this the fastest Alpina ever offered. The 2016 B6 also benefits from new headlamps, upgraded brakes and reshaped aerodynamic elements, but it's mostly the power boost that makes this the quickest Alpina off the line in the company's history. Related Video: THE NEW BMW ALPINA B6 XDRIVE GRAN COUPE Enhancements for 2016 model year deliver more power and refinement than ever. Woodcliff Lake, N.J. –February 11, 2015... The new 2016 model year BMW ALPINA B6 xDrive Gran Coupe gains subtle BMW enhancements and benefits in particular from the results of continuous development by ALPINA. The four-door Gran Coupe, already widely recognized for aesthetic beauty and impressive driving performance, raises the benchmark with exciting new details. The new BMW ALPINA B6 xDrive Gran Coupe will become available to order starting in March 2015, with US deliveries slated to begin at BMW Centers in June. Pricing will be announced closer to the on-sale date. The BMW ALPINA B6 xDrive Gran Coupe is available as a special-order vehicle with capacity-limited production underscoring its exclusivity. The B6's body is manufactured in the BMW 6 Series factory (Plant Dingolfing) and hand-finished with the remaining ALPINA components at the ALPINA factory in Buchloe, Germany. The hand-finishing sequence at ALPINA increases the production lead-time by approximately two weeks.

BMW 1 Series GT spied in 7-seat trim

As BMW prepares to introduce its first-ever front-wheel drive car, the upcoming 1 Series GT, it looks like there will be at least two versions of the car. A conventional-looking hatchback was spotted testing late last year, but now we see an extended-length version in order to accommodate a third row of seats.
Judging by these spy shots, this 1 Series GT prototype has received an extended wheelbase, larger rear doors and more upright D-pillars compared to our previous spy shots (show in the gallery below) all with the aim of creating additional passenger and cargo space. Like the smaller 1 Series GT, this longer model would likely carry over the same powertrain options, which are expected to consist of three- and four-cylinder engines, a hybrid system and the choice of front- or all-wheel drive. The 1 Series GT could make its debut this fall at the Frankfurt Motor Show, but we might have to wait until next year to see the people mover.