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British carmakers facing hard choices as the clock ticks toward Brexit

ST ATHAN, Wales/GAYDON, England - In three cavernous former Royal Air Force hangars at an old airbase in Wales, luxury carmaker Aston Martin is forging ahead with construction of a new vehicle assembly plant. The paint shop is in, robots are being unpacked, and production of the company's critical new sport utility vehicle is on track to start this year – Brexit deal or no deal. "I still have to believe that we'll get to a proper and right decision because a no-deal Brexit is frankly madness," Aston Martin CEO Andy Palmer told Reuters at the company's Gaydon headquarters in England, where designers are working on a diverse lineup of vehicles for the 2020s and beyond. Headlines have focused on plant closures and job losses ahead of Britain's divorce from the EU. Nissan has scrapped plans to build its new X-Trail SUV in the country, while Honda will close its only UK car plant in 2021 with the loss of up to 3,500 jobs - though it has been said the decision was not related to Britain's exit from the EU. However, many auto companies - from luxury marques like Aston Martin to mass-market brands such as Vauxhall - are working on ways to survive after March 29. On the outskirts of London, workers at Vauxhall's operation in Luton are preparing to produce a new line of commercial vans following fresh investment from the brand's French owner PSA, which they are counting on to sustain more than 1,000 jobs. While post-Brexit market conditions remain a big unknown, Vauxhall boss Stephen Norman told Reuters Britain's exit from the European Union could present an opportunity to increase the brand's market share. He is pursuing a marketing campaign to boost demand for the company's modestly priced cars and SUVs. The continued investment by some carmakers and the potential sales upside seen by Vauxhall reflect the conflicting decisions and opportunities that brands face depending on their size, their customers and where they are in the production cycle. All automakers in Britain will have to find ways to make Brexit work, even if only in the short term. Nissan builds nearly 450,000 cars and multiple models, making it hard to pull out of the country any time soon. Toyota builds just one model in Britain, the Corolla, but has only just started making it. The typical life cycle of a car is six years. RACKS OF DASHBOARDS Aston Martin and Vauxhall are as different as two auto companies can be.

Weekly Recap: Geneva's splendor reflects growing demand for ultra-luxury cars

Geneva is one of the most glittering auto shows in the world, but the list of high-powered and bespoke luxury cars was decadent this year even by the rich standards of the Swiss exhibition. It's great for enthusiasts to revel in the flame-throwing Aston Martin Vulcan, the racing-inspired elegance of the Bentley EXP 10 Speed 6 concept and the insane performance of the Lamborghini Aventador LP 750-4 Superveloce, but there's a reason for all of this opulence: the luxury market is big business. And it's growing. IHS Automotive forecasts that so-called ultra-premium sales will nearly triple this decade from 123,000 to 353,000 units around the world. The estimate includes brands like Aston Martin, Bentley, Ferrari and Rolls-Royce, but doesn't count BMW, Mercedes and Audi, which offer less expensive models in addition to their high-end flagships. Though IHS includes Porsche and its relatively large volume in the study, the ultra-premium segment is still set grow at about the same rate, even without the German automaker's figures. So what is propelling all of this growth in the most expensive segment of the auto industry? Put simply, there's more rich people. IHS Automotive principal analyst Tim Urquhart pointed to economic expansion in China, market recovery in the United States and a surge in the lucrative technology sector as contributing factors. This dovetails with a research report by UK-based Oxfam, an international relief organization, which found the world's richest one-percent owned 48 percent of global wealth in 2014, and it's expected to increase to more than 50 percent by 2016. View 17 Photos Carmakers are moving quickly to capitalize with new products, expanding their portfolios with low-volume speedsters like the 800-hp V12 Vulcan at Geneva, and plans to enter new segments, like Rolls-Royce's strategy to make an SUV. "Ultra-premium carmakers are looking to explore ways of growing their product offerings, and thus their bottom lines, in this most potentially profitable of segments," Urquhart wrote in a report on the Geneva show. In a nutshell, there are more choices for people with more money. It's a good time to have expensive taste. Other News & Notes 2016 Mazda MX-5 Miata production launches It won't be long now. The 2016 Mazda MX-5 Miata arrives later this year, and it's officially in production. Mazda announced this week that the roadster began rolling off the assembly line at its Ujina factory in Hiroshima, Japan.

Aston Martin teams with Red Bull Racing for new supercar

Aston Martin has a new supercar in the works. Only this time, it isn't going it alone. Dubbed project AM-RB 001, this model is being jointly developed by the British automaker and Red Bull Racing. The freshly inked "Innovation Partnership" has been a long time in the making and will combine the talents of Aston Martin's chief designer Marek Reichman with those of Red Bull's legendary technical director Adrian Newey. Motorsports consultancy AF Racing AG will also collaborate with Q by Aston Martin Advanced and Red Bull Advanced Technologies to get the project off the ground and onto the road – and the track. Unfortunately, as the press release below and teaser image above are decidedly sparing with the details. But Reichman says the partnership is "in the process of developing a hypercar that combines the latest in aerodynamics from F1 and the stunning design language of an Aston martin sports car." One way or another, we trust it will prove a worthy successor to the likes of the exotic One-77 and the track-bound Vulcan. This isn't the first time we've seen Aston's chief exec Andy Palmer broker a partnership with Red Bull, having previously chaired the team's longtime sponsor Infiniti. Nor is it the first time we're seeing Red Bull dip its toes outside the confines of the F1 regulations – only its previous designs remained limited strictly to the cyberspace of the Gran Turismo gaming series. We'll be watching closely to see how this supercar project comes together. Related Video: ASTON MARTIN AND RED BULL RACING TO CREATE NEXT GENERATION HYPERCAR 17 March, 2016, Melbourne: British luxury brand Aston Martin and Formula One team Red Bull Racing are today announcing a partnership which sees Red Bull Racing's Chief Technical Officer, Adrian Newey and Aston Martin's Chief Creative Officer, Marek Reichman collaborate to produce a ground-breaking Aston Martin hypercar. Codenamed Project 'AM-RB 001', the new hypercar will represent the ultimate blend of cutting edge F1TM technology with Aston Martin's signature sports car design. The combined talents of Newey, widely noted as the most successful Formula One designer of all time, and Reichman, Aston Martin's design chief since 2005, are set to produce the ultimate hypercar. Combining the strongest elements of Red Bull Racing, Red Bull Advanced Technologies and Aston Martin, this new Innovation Partnership unites the world's best aerodynamicists, composite experts and manufacturing masters.