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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.

Mini JCW GP to be hatchback only, no 'Ring record attempt in sight

The 2013 Mini John Cooper Works GP is dropping weight and lowering its lap times, but one thing it won't be losing is its flat roof. Like the original JCW GP package, Evo says that despite the fact that sportier Mini Coupes have been caught testing, the new GP will only be offered in the three-door Cooper hatchback body style. And that's perfectly fine with us.
Evo spoke with GP development chief Jorg Weidinger who said that as a part of the car's history, "It was a hatch, it is a hatch and it should stay a hatch." Weidinger also said that Mini is not planning to set any Nürburgring records with the new JCW GP even though earlier reports indicate that the car is a full 20 seconds faster around the 'Ring than its 2006 predecessor.
The new Mini John Cooper Works GP weighs 121 pounds less than the John Cooper Works Hardtop, offers a fully adjustable coil-over suspension and it will have a starting price of $39,950, (including $700 for destination) when it goes on sale later this year.

Mini battling sales slump again, is it becoming cliche?

Things aren't looking good for Mini this year. The diminutive BMW brand has shown falling sales every month in 2014 in our By the Numbers wrap-ups. If that weren't bad enough, the latest Cooper Hardtop suffered fuel economy issues upon arriving to the US. First, there was a delay getting some versions certified, and then several models had to have their miles-per-gallon ratings revised.
According to Automotive News, the brand's sales are down about 20 percent for the year through October, despite hitting a record 66,502 vehicles in the US for 2013. For their part, Mini execs attribute much of that drop due to constricted supply. However, with the new-generation three-door Cooper finally on sale and the five-door coming at the end of the year, there might be room to bounce back some in the final months of 2014. "We are starting to claw back our way a little bit. It will be an uphill battle," said David Duncan, vice president of Mini of the Americas, to Automotive News. "We will not get back to where we would be even year over year. It should be a lower decrease than it is so far."
AutoTrader Senior Analyst Michelle Krebs reminds Autoblog that external factors aren't helping the brand's sales either. For one, there's "a direct correlation exists between falling gas prices and lower small car sales," she said, and the average price per gallon is now $2.94, according to the US Energy Information Administration. Also, the booming popularity of small crossovers is eating into the compact car market. Mini has its Countryman model, but the trend could be hurting the rest of its lineup. "Mini was fresh, new, unique and stylish, but fashions change and fashion-conscious buyers are fickle. They move on to the next thing," Krebs said.