2002 Volkswagen Cabrio Glx Convertible 2-door 2.0l on 2040-cars

Auto blog

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.

MotorWeek looks back at the 1986.5 VW Scirocco 16V

It's back to the past with MotorWeek for a video dive into the 1986.5 Volkswagen Scirocco 16V, the coupe that carried the pennant for VW's performance aspirations for 15 years, from 1974 to 1989. This one, the last generation, got the hottest of all by adding a head with four valves per cylinder. The 1.8-liter DOHC engine cranked out "an amazing" 123 horsepower and 120 pound-feet of torque, and made this model the fastest VW to ever be sold in America; it went from 0 to 60 miles per hour in 8.5 seconds, faster than a Porsche 944. To compare vintage apples to modern ones, the New Scirocco with a 123-hp 1.4-liter TSI engine and a manual transmission takes 9.3 seconds. We like MotorWeek's Retro Review series not only for the cars, but for how they also remind us of what we used to find important in cars. The Scirocco here gets upvoted for its throttle response and handling, downvoted for an oddly placed oil pressure gauge and lack of battery voltage meter. We can't remember the last time a voltage meter was mentioned in a review, either its presence or lack. Check out the video above for what the definition of "US hot hatch" used to be.

NA auto output to reach 11-year peak

According to Automotive News, automakers are expected to manufacture 16 million light vehicles in North America in 2013. That's up 500,000 units from last year and marks the largest number since 2002. The prediction comes courtesy of LMC Automotive and IHS Automotive, which point to the improving US economy as a bellwether for total production. LMC Automotive says North America will produce 16 million vehicles while IHS has a slightly more optimistic forecast of 16.1 million units. A total of seven automakers are slated to increase production on the continent this year. Nissan is set to see the largest jump at 20 percent over last year.
Volkswagen, meanwhile, is one of the only manufacturers predicted to scale back production. Analysts expect the German company's output to fall by 23 percent to 170,000 units, thanks in part to slow demand for the Volkswagen Passat and Jetta.