2016 Bmw 5-series Xdrive on 2040-cars

Auto blog

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.

2015 BMW i8 Prototype

M Meets Edison
The real telling moment for the new BMW i division will be seeing how the recently tested 2014 i3 sells in its various markets, since that is the car that changes how we perceive our expectations of the brand. But this 2015 BMW i8 green supercar has all the earmarks of a slam-dunk project, we just needed to drive it and make sure for ourselves.
BMW has a spectacular test facility in southern France, called Miramas, and that's where we just had our first brief go behind the wheel of the i8. There were three cars for us there and they were dressed up in exactly the same paisley camo that we've all seen in the spy photos published everywhere for the past year. The interiors, though swathed in masking to hide all the details, varied in their color.

Car and Driver lists 10Best for 2013, same as it ever was

Forgive us for having the distinct feeling of déjà vu, but it certainly feels like we've been here before. By that we are referring Car and Driver and the announcement of its annual 10Best vehicles for 2013. To be sure, it's an impressive selection of cars that combine heart-pounding performance and frugal sensibilities, but it also represents something of a broken record on the part of C/D. We're not so sure that's a flaw, though, as the resulting list is tough to argue with.
Vehicles like the Ford Mustang, Porsche Boxster, and BMW 3 Series have maintained their high-horsepower spots on this list for several years now. Even on the more practical and nimble end, the Honda Accord, Honda Fit and Mazda Miata have not budged. These continued spots are even in light of redesigns for some vehicles such as the Accord, Boxster and 3 Series.
In fact, the only newcomer to the 10Best list this year are the Scion FR-S/Subaru BRZ twins, which knocked out the Cadillac CTS-V. We think it would have been a huge misstep to have excluded the FR-S/BRZ, even in light of the supercharged Caddy's lamentable departure from 10Best.