2006 Bmw 650i Convertible W/sport Package on 2040-cars

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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.

BMW and Mini shuffle NA management, McDowell to retire

BMW and Mini recently shuffled top personnel in their design departments, and now BMW of North America will reorganize its management to improve customer relations. Peter Miles (pictured), currently the executive vice president of operations, will take a newly created position, vice president of sales channel development and customer relations, while Jim McDowell, vice president of Mini of the Americas, will retire.
Chris Koenders, president of BMW Group Netherlands, will move take Miles' spot as executive vice president of operations. David Duncan, western region vice president, will take McDowell's job as vice president of Mini of the Americas. Finishing off the management switcharoo is Peter Witt, who will move from his current position as Managing Director of BMW Sweden to take Duncan's job as western region vice president.
"We are intensifying our customer-driven focus and these changes will influence the entire organization to continue improving all phases of the customer journey from prospect to purchase and throughout the ownership cycle," says Ludwig Willisch, president and CEO of BMW NA. For more information on the management reorganization, check out the press release below.

Someone's willing to pay $16,000 for a hollow, non-working BMW i8

There is an unusual BMW i8 for sale on eBay right now. Unlike your average – and by that we mean "working" – i8, this one pretty much just sits there, looking pretty. See, the i8 in question is just a promotional body shell. It's fullsize and being sold (we think) by a legit BMW dealer (Laurel BMW of Westmont), so it's got strong ties to the real thing, but there's nothing inside. In fact, you can't open the doors or windows and the wheels don't move, unless you count the tiny rolling castors that are a part of the prop. There is no fancy plug-in hybrid powertrain – no powertrain of any sort, in fact – and it was "professionally crafted just for BMW dealers." The headlights do turn on, though, so that's something. What's most impressive, though, is that there are 50 bids for this non-working BMW. In fact, the bidding has climbed up to $16,000. For a car that can't fulfill its mission as a car, that's pretty impressive. Oh, and those bids have not yet hit the reserve price, so the dealer is obviously hoping it can get more money for this hollow BMW. The official base MSRP for a working i8 is $135,700. The first i8 delivered in the US, a special edition for Pebble Beach, just sold for $825,000.