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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.

2015 Volkswagen Touareg [w/video]

The second-generation Volkswagen Touareg has been in production since 2010, and is therefore staring down the last part of its model cycle. To keep buyers interested, the company has undertaken a refresh of its upscale midsize SUV. As is typical of these things, the changes include some exterior and interior rejuvenation, as well as increased content levels and a slight uptick in price. The basics of the styling changes are pretty straightforward. The 2015 Touareg can be pretty easily spotted versus the outgoing model by way of its four-bar chrome grille, a cleaner headlight design, bigger VW badge and a completely new lower front clip. (I got one photo of the old and new models side-by-side for my Twitter followers before we rolled out on the drive.) There's also a thin strip of chrome that runs around the bodywork, standard LED taillights and a selection of three new wheel styles and five new paint colors. Inside, I found it harder to spot the changes, old to new. The Touareg's switchgear has been updated and there's a new frame for the infotainment display, but there's no piece that stands out and says "new model year!" Powertrains and mechanical bits all carryover from the 2014 Touareg, too. But there were a few functional changes to the vehicle, primarily in the new Driver's Assistance Package, for me to take note of as I took a lap of my favorite Ann Arbor, MI driving route. Drive Notes Let me start with the newest news then, the Driver Assistance pack. Volkswagen will sell you this suite of safety gear on either the mid-level Lux or the top-end Executive trims, for $2,500. The package included adaptive cruse cruise control, "Front Assist" for emergency braking situations, lane-keep assist and blind spot monitoring. If the contents of that package don't strike you as revolutionary, you're not alone. Some or all of the technologies that are new to the Touareg have been around other showrooms – and other VW family products – for quite a while. Still, they're nice to have as options. All of the driver assistance features that I was able to test worked as advertised, too. The adaptive cruise uses cameras, radar and ultrasonic sensors, so it isn't likely to be impacted by inclement weather, which is nice. I also appreciate that the lane-keep assist (which offers the driver a haptic buzz to the steering wheel when straying out of the lane) can be turned off, or turned down in terms of intensity and reaction time.

VW updates Scirocco with revised styling, new engines

The Scirocco is undoubtedly one of the better-looking models in the Volkswagen lineup, but introduced back in 2008, it's now been on the market - some markets, anyway - for the better part of six years. VW is said to have an all-new replacement in the works, but before that arrives, the German automaker has announced a facelifted version with revised styling and a new engine lineup.
Set to be revealed at the Geneva Motor Show next month, the new Scirocco benefits from updated styling front and rear, high-tech exterior lighting, a revised cabin space with some throwback retro touches, some new technologies and, of course, an array of fresh wheel options ranging from 17 to 19 inches.
The updated Scirocco will be offered with a wide array of engines right from the get-go, including four gasoline options and two diesels, spanning from 125 horsepower all the way up to the 280-hp Scirocco R. The 2014 model hits European showrooms in August, but unfortunately isn't any more likely to make the transatlantic voyage Stateside than the version it replaces. Still interested? There's plenty to see in the high-res image gallery above and details in the press release below.