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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.

BMW strategy gets green with future i8 Roadster, PHEV Mini

Recent concepts like the Vision Next 100 have signaled BMW's plan to become a leader in automotive tech in the near future, but the Bavarian automaker added some concrete details to that strategy during the company's annual press conference. The business promises there are updated i models and more plug-in hybrids on the way, and a vehicle called the iNext could bring an autonomous EV to the road early next decade. Before we see any completely new vehicles, look for BMW to refine its current green models. Later this year, the i3 will get a larger battery capacity, which will increase the hatchback's range. After seemingly endless teasing, the BMW i8 Roadster will finally arrive in 2018, according to a slide during the conference. The company will also launch a plug-in hybrid Mini, but it didn't give a specific arrival date. At the beginning of the next decade, BMW will also introduce a fully autonomous i model. At the beginning of the next decade, BMW will also introduce a fully autonomous i model, which it currently calls the iNext. "BMW iNEXT heralds the next era of mobility," company CEO Harald Kruger said. "This symbol of our technology leadership will demonstrate how we will bring the future of mobility into series production." BMW refers to its research into autonomous driving as Project i 2.0. Just as the initial development of the i models led to better EV tech and innovations in carbon fiber, the new undertaking should result in improvements to networked motoring and driverless tech for the iNext. The company plans to focus on high definition digital maps, sensor technology, cloud technology, and artificial intelligence. The company's product plan for the i range doesn't show any vehicles between the i8 Roadster in 2018 and the iNext early next decade. Perhaps the new model is the fruition of the many rumors about a family-oriented i5. As BMW eyes the future, it still sees the combustion engine as an important tool for the present, and there are still more traditional models to look forward to. Without offering any details, BMW promises more M models are under development. The larger X7 CUV will also arrive soon, and there'll possibly be even more crossovers, too. "We are also taking an in-depth look at the additional potential of this highly attractive segment," Kruger said.

Mini Clubman to get the 'Works,' four-door Hardtop not so much

Performance sub-brands are expanding faster than leftover marshmallow Peeps in a microwave. And Mini's John Cooper Works line is not likely to be an exception. Mini's stand at the New York Auto Show was somewhat low-key, with the debut of the Clubman All4 all-wheel-drive variant on one end and the expected John Cooper Works Convertible on the other. And for the foreseeable future, the Mini lineup will change through redesigns of existing models and the introduction of more derivatives – like a John Cooper Works version of the new Clubman. At least that's what some of Mini's product guys indicated. "The Works is always our top model. John Cooper Works is not just limited to small cars, it's also for compact cars," said Ralph Mahler, Mini's head product manager, in an interview with Autoblog at the New York Auto Show. "Therefore, I wouldn't see anything against bringing the Works to the Clubman. I think it would be a perfect match." Though one was offered in the last generation, a Works model may seem at odds with the new Clubman's mission, as the company has spent considerable effort pitching it as the grown-up Mini, something to rival premium-branded compacts. Yet Mahler sees a possible Works Clubman as the ultimate in the lineup and an exclusive model, especially since he said take rate for the rest of the Works Minis is around 5 percent. Patrick McKenna, Head of Product Planning at Mini USA, said that since the Clubman went on sale early this year, ordering has included mostly highly optioned models, and customers are notably cross-shopping the Audi A3. Loaded up, a Clubman Cooper S All4 pushes past the $45,000 mark. Currently, the most powerful Cooper S produces 189 horsepower from its 2.0-liter turbo four. That's more power than a front-drive A3 1.8T, but less than the A3 2.0T Quattro – and way less than a cheaper Volkswagen Golf GTI. Consider that the engine in the just-released John Cooper Works Convertible produces 30 more horses than the one in the Cooper S and a Works Clubman starts to make more sense. Strangely, the four-door Mini Hardtop, released last year, doesn't appear to be destined for the Works treatment. McKenna said the four-door will continue to offer special appearance packages that offer Works-like touches and offer dealer-installed accessories such as exhausts and horsepower increases.