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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.

Recharge Wrap-up: Mini Superleggera decision delayed, Denza begins production

A decision on whether or not to build the Mini Superleggera has been pushed back. Earlier this year, Mini's Peter Schwarzenbauer hinted that the electric roadster concept could eventually make its way to production. Now, Schwarzenbauer is saying that a possible call is still at least six months away. "To really investigate seriously," Schwarzenbauer says, "you look into several different options, you come to the question: do we produce it ourselves, do we give it to somebody else?" Mini is considering whether or not to expand its seven-car lineup to 10 models, or scale it back to five "superheroes," which still wouldn't rule out more models. Read more at Reuters. The first EV from Daimler and BYD's joint venture, Denza, is set to go on sale this month, with production already starting. The 50/50 partnership said earlier that it was "well on track" to begin sales in September 2014. Now, Daimler has announced that the first Denza has rolled off the production line. According to Daimler, the cars will be sold through an independent dealer network. The Denza, which has a range of about 186 miles, will start at about $60,000. China's generous subsidies could help bring that cost down quite a bit (by nearly $20,000) for customers. Read more at Want China Times, or in the press release from Daimler, below. Local Motion wants to help organizations pool their transportation resources through fleet-sharing, with a focus on EVs. The company uses software to manage and track vehicle use, diagnostics, energy consumption, vehicle reservations and the like. The keyless technology allows employees to reserve and use the right vehicle for the job, and allows companies to save on vehicle ownership and maintenance. Local Motion is working with companies like Nissan to encourage the adoption of emissions-free driving, as well. Read more in the press release below, or at the Local Motion's website. DENZA rolls off production lines in China marking another key milestone for Daimler - Daimler's joint venture with Chinese partner BYD is the first Sino-German joint venture dedicated to electric vehicles in China. - Hubertus Troska: "DENZA is by far the most serious local electric vehicle effort in China, and a key pillar of our electric vehicle strategy in the country." - DENZA is manufactured at a modern production line that follows Daimler's proven production management system.

Mini Minor to be co-developed with Toyota

It was back in 2011 when Mini first showcased the prospect of an even smaller hatchback with the Rocketman concept at the Geneva Motor Show. In the nearly four years since, parent company BMW has hemmed and hawed on the possibility of putting it into production, but the latest word from Europe has it that the project is a go. According to Automobile magazine, Mini is realigning its product portfolio into five pillars: the essential hardtop we've already seen (available in two/three- and four/five-doors), the convertible, the upcoming new Clubman wagon (coming this summer with full-size auxiliary suicide doors on both sides), the next-gen Countryman crossover in 2016 and two new model lines. One will be the production version of the Superleggera roadster concept, earmarked for 2018. The other will be the Minor, a smaller city car reviving a long-gone model name and presaged by the aforementioned Rocketman concept. But for that last one, Mini won't go it alone. To develop the mini Mini, BMW will reportedly turn to its partnership with Toyota. The relationship is already set to yield a new Supra and Z4 and share fuel cell and other technologies. But this would broaden the partnership to include a small hatchback. However rather than use the existing (or next-gen) Aygo, which is already built under joint venture with PSA Peugeot Citroen (with which BMW previously had a joint engine venture), word has it that the BMW and Toyota will develop a new platform for the project – one that will be used by both partners. The new product plan doesn't leave much room for the Mini Coupe and Roadster (which have already been discontinued), for the Paceman three-door crossover (which will suffer the same fate) or for the projected seven-seater minivan. But the addition of the new Superleggera roadster and super-mini Mini aren't likely to leave us wanting for either. Related Video: