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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.

Dinan S3-R BMW 1M Coupe

I nearly shed tears a few years ago upon learning that BMW was only planning to produce a very limited quantity of its then-new 2011 1 Series M Coupe. In simplest terms, the two-door was a 1 Series fitted with a modified version of the automaker's twin-turbocharged 3.0-liter inline-six, and the running gear (gearbox, driveshaft, axles) from contemporary M3 models. It was also a return to form for the brand. Aggressively short and stubby in stature but packing telltale flared wheel arches that hinted at its potential, the four-seater was a spiritual successor to the original (and much loved) E30 M3 from decades earlier.
After spending a day with the original high-performance 1 at New York's Monticello Motor Club, I declared, "The little coupe with the big flares is old-school retro cool and deliciously fun to drive ... the new BMW 1 Series M Coupe doesn't target boy-racers, it targets enthusiasts." Yet sadly - and despite strong demand - BMW limited the model's production to just one year. All told, only 740 units made it to the States, and each was gobbled up at a starting price of $46,135, a price tag history will show to be a bargain.
Since I had little hope of even driving one again, I deliberately pushed all memories of BMW's 1 Series M Coupe from my mind - until my phone rang recently. On the other end was a representative from Dinan Engineering who wanted to know if I would be interested in driving the company's new S3-R BMW 1M. A quick Google search revealed it to be a heavily modified version of the discontinued 1 Series M Coupe. As if they needed an answer...

2015 BMW i8 sets everyone's tongues wagging in Northern Michigan

Like few other cars we can remember, people want to talk about the 2015 BMW i8. Drive one, and you'll soon find out what we mean. They stop you at gas stations. They accost you in Walgreen's parking lots. They stream out of neighborhood bars, beers in hand.
At least, that was our experience this week during Autoblog's Technology of the Year testing. We had the pleasure of driving the plug-in hybrid BMW sports car up to and around Petoskey, MI, a resort town where seeing such exotics is rare enough, let alone in the off season. It made for some interesting conversations - so we began writing down some of the comments the butterfly-doored coupe inspired. Here's a sampling:
"Wanna race for pinks? I'll go easy on you." - Acne-covered teenage pizza delivery driver in a sad-looking Ford Taurus parked at a Valero gas station near Grayling (which incidentally didn't actually have gas).