#Europe

Roughly one year ago, German automakers were confronted with a crisis. Following Volkswagen’s diesel emissions fiasco, European antitrust regulators became suspicious that BMW, Daimler, and VW Group were involved in a longstanding automotive cartel that cooperated on decisions regarding technical issues, development, supplier management, and illegal price fixing. Investigators were also concerned manufacturers worked together to standardize diesel treatment fluid (AdBlue) reservoirs to reduce exhaust emissions, then encouraged each other to cheat on emissions tests when they were deemed insufficient.

This resulted in a series of raids and then almost a full year of silence on the matter. However, if Volkswagen’s dieselgate has taught us anything, it’s that German authorities prefer a snail’s pace when pursuing a criminal probe.

Apparently unsatisfied with the initial findings, the European Commission opened an in-depth and official investigation on Tuesday against the “circle of five,” a group that includes Audi, VW, Porsche, Daimler, and BMW. The quintet is accused of holding meetings where they colluded to limit the development and application of certain emissions control systems for cars sold in Europe. There’s also an accusation of price fixing.

In the 1990s, nobody in North America spent much (any?) time thinking about Maserati products. So you’d be forgiven if today’s Rare Ride slipped from your fond early-90s memories long ago.

It’s the Shamal, and it’s a bit homely.

It’s looking increasingly like the compression ignition engine won’t get an opportunity to redeem itself at Cadillac. After making diesel a dirty word in the early 1980s with the help of Oldsmobile’s cantankerous, oil-burning 5.7-liter V8, GM’s luxury arm dived back into diesel development towards the end of the last decade. A recession and bankruptcy put the kibosh on those outsourced plans.

Then, in 2014, happier economic times brought about a renewed interest in the pursuit of diesel. Cadillac hoped to woo MPG-loving Europeans by outfitting new sedan models with diesel powerplants developed in-house. Americans would get a taste, too.

Scratch that, says Cadillac president Steve Carlisle.

For the past two years, we’ve reported that the post-recession upswing in new car buying in North America seems to have plateaued. Environmental factors have led to Millennials buying fewer cars than their parents’ generation, and wealthy folk have proven unable to pick up the slack — as no amount of money allows you to drive several cars at the same time.

Most major carmakers posted declining U.S. deliveries in July, and August’s data proved a mixed bag. However, America isn’t the only big market that’s taking a beating. The First World seems to have collectively surpassed peak growth and now has to ride out an extended period where volume dwindles until some other nation can afford to import container ships full of sparkly new automobiles.

In the mountainous country of Switzerland, there once existed a company called Monteverdi. And for a few decades, it built luxurious and sporty coupes and sedans for a very wealthy clientele. Today’s Rare Ride is the first sedan offering from that company. It’s a High Speed 375/4, from 1970.

Air-cooled engine at the back, two upright, circular headlamps at the front, and classic gold metallic paint.

It’s not a vintage Porsche 911, but it is a cousin — a Volkswagen 412 from 1973.

Last time on Rare Rides, we surveyed a little Fiat 124 Sport Coupe. A family car underneath, it aimed to be affordable fun for the middle-market. Today, we have a look at some not-so-affordable fun for the well-heeled. Come along for the New Class coupe experience.

The continent that spawned microscopic postwar bubble cars and made the “city car” segment a thing is moving ever further away from its automotive past. European buyers, perhaps influenced by their American counterparts, are beginning to realize they truly can have it all, adjusting their buying habits accordingly.

Of course, by “all,” we mean all the cargo space.

In an earlier analysis of Ford’s lackluster share price, we noted that Europe and China posed a significant problem for the automaker’s bottom line. Europe, which was previously pretty good to the brand, has gradually lost its share of the market since 1994. While Ford still moves a lot of metal in the region, something’s definitely wrong.

On Wednesday, Ford announced that its European operations had endured a $73 million second-quarter loss. It’s anticipating a full-year loss in the region after earning $234 million last year. “We’re extremely dissatisfied with our performance in Europe,” said CEO Jim Hackett.

Something has to be done to avoid further setbacks. According to Jim Farley, Ford’s head of global markets, the clear remedy is concentrating on vans and crossovers because that’s where the money is. It’s a similar strategy to what’s being done in the United States, where Ford eventually aims to cull the lineup to a point where the Mustang is the only vehicle that qualifies as a traditional car. But is it the correct one, considering how we’ve arrived at this point?

The Rare Rides series will always have space for unique French cars. It’s featured several Renault vehicles and a couple of Citroëns to date, but only one Peugeot, to my recollection. That one, a 106 GTI, was an import to Canada by an enthusiastic second-hand buyer. Today we feature a second Peugeot: one actually sold by a dealer, brand new, in America.

It’s the hottest 405 sold in the U.S. — the excellently named Mi16.

In what’s bound to be one of the most obscure editions of Rare Rides yet, today’s ride is very limited-production in nature. So limited, in fact, that only one was produced. And it’s so limited in its exposure that the Internet can’t seem to decide the year it was actually built.

It’s hard to know where to start with this thing.

As the United States considers imposing new tariffs of up to 25 percent on imported automobiles and parts, the industry has rallied together to stand against the proposal. Manufacturers already made individual cases for themselves and are now dropping very bleak-sounding industry projections on the U.S. Commerce Department in the hopes of changing the administration’s mind.

However, President Donald Trump continues to promote the imposition of tariffs to force a sort of economic justice. For years, China’s protectionist policies regarding automobiles forced American manufacturers to build inside its borders and partner with Chinese firms for years. That’s something Trump claims could be a national security risk. China also recently upped its tax on American-made autos to 40 percent, shortly after promising to lower them. Meanwhile, Europe still holds a consistently higher tariffs on imported cars than the U.S., except for light trucks.

Commerce Secretary Wilbur Ross seems aware that China may have gamed the system in its favor, but appears less convinced that it’s a matter of national security. On Thursday, during a hearing on the probe into the industry, he said it was “too early” to say what the United States would do. Meanwhile, auto groups continue to make their terrifying case. (There’s also quite a bit of rolling PR in downtown D.C. today, as you’ll see below.)

The organizers of televised U.S. awards shows, who annually serve up a night of lectures, sermons, hypocrisy, and guilt for an increasingly small audience, should realize that the show doesn’t necessarily have to go on.

It’s certainly not going on in Germany. Axel Springer, a top publishing house for numerous German media sources, including AutoBild, has now wrestled the prestigious Golden Steering Wheel award out of everyone’s hands. There’ll be no thanking of grade school teachers by auto execs this year. Blame, well, the auto industry.

The ground beneath the factory Volvo Cars opened Wednesday in South Carolina grew shakier after company executives warned that the U.S.-China trade dispute could undo plans to create up to 4,000 auto jobs in the state.

As you probably know, Volvo is currently owned by Chinese automaker Geely — which has a lot to lose if trade relations break down. Geely intends to export Volvo’s American-built cars to markets outside the United States. The situation’s a problematic one, as Volvo also imports the bulk of its U.S. market vehicles and any economic hurdles would surely gum up the works.