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Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Rolls-Royce posts 25% jump in sales thanks to Cullinan demand

Luxury carmaker Rolls-Royce said on Tuesday it recorded a 25% jump in sales in 2019, underpinned by solid demand for its first-ever SUV, Cullinan, just a year after the launch. The 116-year-old British company said it sold a record 5,152 cars in 2019, compared with 4,107 units in the prior year. "Worldwide demand last year for our Cullinan SUV has driven this success and is expected to stabilize in 2020," Chief Executive Officer Torsten Mueller-Oetvoes said in a statement. The Cullinan was unveiled in 2018. The BMW-owned brand's strong numbers serve as a breather at a time when the global automobile industry is still grappling with various challenges amid a broader economic slowdown that dented sales of many automakers. North America continued to be the biggest contributor with about a third of Rolls-Royce's total sales, followed by China and Europe. Related Video:

Rolls-Royce Spectre electric coupe testing moves to sunny southern France

Rolls-Royce's first series-produced electric model is well on its way to production. Called Spectre, the big coupe is undergoing shakedown testing on and off the track in the sunny south of France, and the British firm announced that development work is about 40% complete. Going electric isn't an excuse for Rolls-Royce to stray from the reputation for excellence that it has earned over the past 116 years, so engineers are putting the Spectre through the most rigorous testing program they've ever subjected a new model to. We're told that, when all is said and done, the prototypes will have covered over 1.5 million miles of testing, which represents on average more than 400 years of use for a Rolls-Royce. Some test mules were sent to freeze in Sweden near the Arctic Circle, while others were shipped to the French Riviera. Testing in France will be split into two parts. First, the Spectre will be put through its paces on the track that Rolls-Royce parent company BMW operates in Miramas, a town located about an hour west of Marseilles. Engineers will notably get the opportunity to drive the prototypes on handling courses, on a 3.1-mile oval with steep banks, and in standing water. when they have passed every challenge with flying colors, the prototypes will be sent out to the picturesque roads that zig-zag through the countryside surrounding the test track. Rolls-Royce explained it's putting a tremendous amount of effort into fine-tuning the Spectre because the coupe packs more technology than any model it has previously released. It features "141,200 sender-receiver relations and has more than 1,000 functions and more than 25,000 sub-functions," according to the company, which is around three times more sender-receiver signals than in a typical Rolls-Royce. The Spectre will inaugurate a new suspension system that promises to take the firm's Magic Carpet Ride to the next level. It relies on technology that scopes out the road ahead and on data sent by the navigation system to decouple the anti-roll bars when needed, such as on a straight road, and recouple them as the car approaches a corner. The suspension system also gets firmer ahead of a bend. Rolls-Royce hasn't released powertrain specifications yet, and the Spectre's final design remains hidden by camouflage, but the few official numbers available are impressive.