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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.

VW announces reworked 6.0 W12 TSI engine

Nobody makes more engines with a dozen cylinders than the Volkswagen Group. They're W12s, of course, owing to the novel shape of their cylinder banks. Now the German industrial giant has announced a comprehensively reworked version of that engine at the same Vienna Motor Symposium where it presented its new 2.0-liter turbo four. The new W12 retains the same arrangement and the same 6.0-liter displacement, but updates it all with the latest powertrain tech. In place of Audi's FSI direct injection and Bentley's TMPI multi-point injection, the engine has adopted a new TSI system. It's also got a pair of new twin-scroll turbochargers, APS-coated cylinders, a new cooling system, active engine mounts, cylinder deactivation, and a stop/start system. And – crucially for application in the upcoming Bentayga – it has an oil circuit designed for off-road use. The revised package now produces 600 horsepower and 664 pound-feet of torque. Considerably more than the 567 hp and 516 lb-ft offered in the Bentley Continental GT W12, but less than the GT Speed, which we suspect will get an even more powerful version of this new engine. It's also more powerful than even the top version of Audi and Bentley's 4.0-liter twin-turbo V8, to make the W12 a more compelling option. Of course that's just as far as the Continental GT is concerned. The W12 has also found use in the Continental GTC and Flying Spur, as well as the Volkswagen Phaeton and Audi A8, and could find further applications under the Flying B emblem and elsewhere in the future. VW says that in the right application (say, in the production version of the Bentley EXP 10 Speed 6 concept, for example), the new twelve-pot could deliver 0-62 times of under four seconds and a top speed in excess of 186 miles per hour. Volkswagen at the 36th International Vienna Motor Symposium Dr. Heinz-Jakob Neusser: "The car of the future will continue to fascinate people" - CO2 reduction, electromobility and digitalisation are the greatest challenges facing the automotive industry - The future of the internal combustion engine will be characterised by high rpm diesel and high-performance three-cylinder TSI engines - Laser roughening – innovative coating process in large-scale production - New 6.0 W12 TSI with 447 kW (608 PS) – performance and refinement - New generation of EU6 TDI engines for light-duty vehicles Dr.

Volkswagen's 261-mpg hand-built XL1 headed for Geneva

After years of rumors, development and testing, the Volkswagen XL1 is finally about to become a reality. The project that began life as a daring 1-Liter concept car in 2002, will finally get its production-ready curtain call at the Geneva Motor Show in just a few weeks.
As soon as it hits the streets, the two-seat XL1 will instantly become the most fuel-efficient and most aerodynamic production car in the world. The car uses a plug-in hybrid system to achieve mind-blowing consumption of just 0.9 liters of diesel fuel consumed every 100 kilometers (and average of roughly 261 miles per gallon). Plus, the XL1 can go up to 50 kilometers on its battery power alone. Coefficient of drag is a miniscule 0.189, thanks to a tiny frontal area and an obviously slippery shape.
XL1 power comes from a two-cylinder diesel motor connected to a seven-speed dual-clutch gearbox, while the 20 kW electric motor is fed by a lithium-ion battery. Both combine to give the XL1 performance figures that are, while not stirring, not shabby considering its extreme frugality: 0-62 miles per hour comes up in 12.7 seconds and top speed is nearly 146 mph.