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Found 8 results

  1. The threat of a 20 percent tariff on vehicles exported from the European Union has a number of automakers panicking. But that tariff could be taken off the table if the EU removes their tariff on vehicles exported from the U.S. German paper Handelsblatt learned from sources that a meeting was held between the US ambassador to Germany, Richard Grenell and number of CEOs from German automakers. Grenell presented an offer directly from President Donald Trump - "elimination of all tariffs on automobile imports on both sides and removal of non-tariff barriers, such as regulations on the size of rear mirrors." Currently, the U.S. levies a 2.5 percent tariff on vehicles imported from EU. A 10 percent tariff is slapped on by EU members on vehicles imported from the U.S. The hope is that German automakers can put some pressure on the government to possibly bring this up with other EU members. Diamler, Volkswagen, the German Economy Ministry, and the European Commission declined to comment when asked by Reuters. Source: Handelsblatt, Reuters
  2. The threat of a 20 percent tariff on vehicles exported from the European Union has a number of automakers panicking. But that tariff could be taken off the table if the EU removes their tariff on vehicles exported from the U.S. German paper Handelsblatt learned from sources that a meeting was held between the US ambassador to Germany, Richard Grenell and number of CEOs from German automakers. Grenell presented an offer directly from President Donald Trump - "elimination of all tariffs on automobile imports on both sides and removal of non-tariff barriers, such as regulations on the size of rear mirrors." Currently, the U.S. levies a 2.5 percent tariff on vehicles imported from EU. A 10 percent tariff is slapped on by EU members on vehicles imported from the U.S. The hope is that German automakers can put some pressure on the government to possibly bring this up with other EU members. Diamler, Volkswagen, the German Economy Ministry, and the European Commission declined to comment when asked by Reuters. Source: Handelsblatt, Reuters View full article
  3. President Donald Trump is no fan of German automakers. Take for instance this quote from last January, He has also made comments about BMW in the past few months in light of possible tariffs (which appear to be going into effect today). Now, new comments have been brought to light where the president wants to try and ban German cars from the U.S. German magazine Wirtschaftswoche reports that during French President Emmanuel Macron's visit to the U.S. in April, Trump said that he will maintain his current trade policy "until no Mercedes models rolled on Fifth Avenue in New York." This information comes from several unnamed European and U.S. diplomats. At the time of this writing, Reuters hasn't able to verify this information. As we reported last week, the Trump administration has ordered a probe into new car imports on the basis of national security. It may result in imported vehicles being hit with a 25 percent tariff. Let's suppose that President Trump somehow presents a ban on German cars, trying to get it implemented may be quite problematic .For one, not all vehicles from German automakers will fall under the ban - an example is the Mercedes-Benz G-Class is built in Austria by Magna-Steyr. German automakers also have a sizable production presence in the U.S. Germany’s auto industry association VDA said German automakers built 804,000 vehicles in the U.S. last year. One thing is for sure; automakers will be dealing with more uncertainty for some time. Source: Wirtschaftswoche, Reuters
  4. President Donald Trump is no fan of German automakers. Take for instance this quote from last January, He has also made comments about BMW in the past few months in light of possible tariffs (which appear to be going into effect today). Now, new comments have been brought to light where the president wants to try and ban German cars from the U.S. German magazine Wirtschaftswoche reports that during French President Emmanuel Macron's visit to the U.S. in April, Trump said that he will maintain his current trade policy "until no Mercedes models rolled on Fifth Avenue in New York." This information comes from several unnamed European and U.S. diplomats. At the time of this writing, Reuters hasn't able to verify this information. As we reported last week, the Trump administration has ordered a probe into new car imports on the basis of national security. It may result in imported vehicles being hit with a 25 percent tariff. Let's suppose that President Trump somehow presents a ban on German cars, trying to get it implemented may be quite problematic .For one, not all vehicles from German automakers will fall under the ban - an example is the Mercedes-Benz G-Class is built in Austria by Magna-Steyr. German automakers also have a sizable production presence in the U.S. Germany’s auto industry association VDA said German automakers built 804,000 vehicles in the U.S. last year. One thing is for sure; automakers will be dealing with more uncertainty for some time. Source: Wirtschaftswoche, Reuters View full article
  5. Another wave of fallout from the Volkswagen diesel emission scandal could be coming later this week in a German court. Reuters reports that Germany’s federal administrative court will be ruling whether or not local governments could ban diesel vehicles. Environmental group DUH sued the Stuttgart and Duesseldorf governments for over levels of diesel particulate matter exceeding European Union limits after Volkswagen admitted to cheating on emission tests. Local courts ordered the governments to ban diesel vehicles that don't conform to current EU standards on days when pollution is bad. The two states where a number of automakers and suppliers reside appealed the decision to the federal administrative court. This move could cause serious damage to German automakers as it would cause a fall in resale values and overall sales. Investment Evercore ESI forecasts a five percent drop in diesel residual values, resulting in a loss of 1.6 billion Euros (about $2 billion) in operating profit "across eight European and U.S. carmakers." Source: Reuters
  6. Another wave of fallout from the Volkswagen diesel emission scandal could be coming later this week in a German court. Reuters reports that Germany’s federal administrative court will be ruling whether or not local governments could ban diesel vehicles. Environmental group DUH sued the Stuttgart and Duesseldorf governments for over levels of diesel particulate matter exceeding European Union limits after Volkswagen admitted to cheating on emission tests. Local courts ordered the governments to ban diesel vehicles that don't conform to current EU standards on days when pollution is bad. The two states where a number of automakers and suppliers reside appealed the decision to the federal administrative court. This move could cause serious damage to German automakers as it would cause a fall in resale values and overall sales. Investment Evercore ESI forecasts a five percent drop in diesel residual values, resulting in a loss of 1.6 billion Euros (about $2 billion) in operating profit "across eight European and U.S. carmakers." Source: Reuters View full article
  7. The New York Times dropped a bombshell of a report last week saying that German automakers funded an experiment that had 10 monkeys in airtight chambers, inhaling diesel fumes from a Volkswagen Beetle TDI. The experiment took place back at an Albuquerque, New Mexico laboratory in an effort to prove newer diesel vehicles were cleaner than older models. But researchers were unaware that the Beetle used in the experiment was equipped with a defeat device that allowed it produce fewer emissions in the lab than on the road. This experiment was brought to light via a lawsuit against Volkswagen in the U.S. The European Research Group on Environment and Health in the Transport Sector (E.U.G.T) commissioned the experiment. Funding for the group was provided by Volkswagen, BMW, and Daimler. The group did not do any research itself, instead commissioning scientists to conduct studies that could be used to defend the fuel. Last year, the group was shut down amid controversy over its work. The three automakers told the Times "the research group did legitimate scientific work." "All of the research work commissioned with the E.U.G.T. was accompanied and reviewed by a research advisory committee consisting of scientists from renowned universities and research institutes,” Diamler said in a statement. Both BMW and Diamler told the publication "they were unaware that the Volkswagen used in the Albuquerque monkey tests had been set up to produce false data." Volkswagen said at the time of original story that researchers involved in the study did not publish a complete report. Since then, Volkswagen has issued an apology. “We apologize for the misconduct and the lack of judgment of individuals. We’re convinced the scientific methods chosen then were wrong. It would have been better to do without such a study in the first place,” the German automaker said in a statement obtained by Bloomberg. But there is another twist to this story. German newspaper Stuttgarter Zeitung reported yesterday about a study done by the University of Aachen in Germany that had 25 people breath in diesel exhaust as part of a clinic. The study was funded by the E.U.G.T. and was referenced in annual reports from the group. The University said that it "had followed typical procedures, such as approval by an independent ethics commission as well as written consent from each participant." It is unclear whether or not participants were told what the experiment would entail. Nevertheless, it is another black eye for German automakers and diesel. Source: New York Times, Bloomberg, (2), Stuttgarter Zeitung, Automotive News (Subscription Required)
  8. The New York Times dropped a bombshell of a report last week saying that German automakers funded an experiment that had 10 monkeys in airtight chambers, inhaling diesel fumes from a Volkswagen Beetle TDI. The experiment took place back at an Albuquerque, New Mexico laboratory in an effort to prove newer diesel vehicles were cleaner than older models. But researchers were unaware that the Beetle used in the experiment was equipped with a defeat device that allowed it produce fewer emissions in the lab than on the road. This experiment was brought to light via a lawsuit against Volkswagen in the U.S. The European Research Group on Environment and Health in the Transport Sector (E.U.G.T) commissioned the experiment. Funding for the group was provided by Volkswagen, BMW, and Daimler. The group did not do any research itself, instead commissioning scientists to conduct studies that could be used to defend the fuel. Last year, the group was shut down amid controversy over its work. The three automakers told the Times "the research group did legitimate scientific work." "All of the research work commissioned with the E.U.G.T. was accompanied and reviewed by a research advisory committee consisting of scientists from renowned universities and research institutes,” Diamler said in a statement. Both BMW and Diamler told the publication "they were unaware that the Volkswagen used in the Albuquerque monkey tests had been set up to produce false data." Volkswagen said at the time of original story that researchers involved in the study did not publish a complete report. Since then, Volkswagen has issued an apology. “We apologize for the misconduct and the lack of judgment of individuals. We’re convinced the scientific methods chosen then were wrong. It would have been better to do without such a study in the first place,” the German automaker said in a statement obtained by Bloomberg. But there is another twist to this story. German newspaper Stuttgarter Zeitung reported yesterday about a study done by the University of Aachen in Germany that had 25 people breath in diesel exhaust as part of a clinic. The study was funded by the E.U.G.T. and was referenced in annual reports from the group. The University said that it "had followed typical procedures, such as approval by an independent ethics commission as well as written consent from each participant." It is unclear whether or not participants were told what the experiment would entail. Nevertheless, it is another black eye for German automakers and diesel. Source: New York Times, Bloomberg, (2), Stuttgarter Zeitung, Automotive News (Subscription Required) View full article

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