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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.

Jaguar Land Rover Special Vehicle Operations could build standalone models

Jaguar Land Rover may be set to turn its Special Vehicle Operations division into something much bigger than a mere in-house tuner. Bloomberg spoke to the head of JLR's high-performance, customization outfit, John Edwards, who hinted that his team may move beyond simply modifying F-Types, Range Rovers and the like. "We're certainly looking at that, and we've got the capability to do that," Edwards told AN. "Is there an opportunity for us to do a completely standalone car? Maybe." Such a move into full-scale, standalone models would be a big step, particularly for a division that's still kind of in its infancy. Bloomberg references the success of Mercedes-AMG, but the German division has had the benefit of decades of growth. AMG spent years and years building high-performance versions of all manner of mainstream Mercedes vehicles, before moving onto cars like the SLS AMG and AMG GT, which have no mainstream analog. In other words, AMG had a long time to develop a reputation building high-performance vehicles that people know and recognize before it moved into building vehicles of its own. We aren't entirely convinced that SpecOps wouldn't benefit from taking a similar approach, delivering additional SVR vehicles, like the rumored XE SVR, before striking out on its own. We'd like to know what you think, though. Is it already time for Special Vehicle Operations to build standalone models, or should it learn to walk before it runs by modifying more of Jaguar Land Rover's existing product. Have your say in Comments. Related Video:

Jaguar Land Rover says half its models will be hybrids or all-electric by 2020

Neither Jaguar nor Land Rover has ever been mistaken for big-time green-car brands, but their parent company is trying to change that. Jaguar Land Rover looks to have as many as half of its models be of the hybrid, plug-in hybrid, or battery-electric variety by 2020, CEO Ralf Speth said at the Los Angeles Auto Show last week. Speth made the announcement while showing off the I-Pace concept compact crossover. The green-car expansion would mark a natural extension of Jaguar Land Rover's decision last year to double the headcount in its advanced-engineering department. As for the five-seat I-Pace, that model will be Jaguar Land Rover's first production electric vehicle when it starts sales in 2018. The car will have a 90-kilowatt-hour lithium-ion battery pack that will deliver a single-charge range of about 220 miles. Boasting more than 400 horsepower, the car will also be able to go from 0 to 60 miles per hour in about four seconds. What's also notable is that Jaguar says the model has been designed to be an electric vehicle from the ground up, and hasn't been converted from the platform of an existing model. Of course, Jaguar late last year said it would enter a team in the FIA Formula E electric-vehicle open-wheel racing circuit, so the British badge has made recent noise about upping its green-car quotient. As for the I-Pace, the automaker hasn't revealed pricing on the model, but it's safe to say that it will be quite high. Check out a three-minute video of Speth's presentation here. Related Video: