06 R350 Premium Navigation Pano Roof New Tires Bucket Seats $0dn $279/mo 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.

2014 Mercedes-Benz CLA250 Sport

Mercedes Makes A Mighty Little Sedan
We got overexcited when the W203 Mercedes-Benz C-Class sedan came out in 2001, calling it the "Baby Benz" when it really wasn't. We knew that, too, but our enthusiasm for a model more like the old 190 of the '80s was so strong that we were willing to stretch the first-gen C-Class to fit that mold. Today, the C-Class has done what all German premium cars do: grown in size. In this case, grown to satisfy the market intentions of the previous E-Class.
There was the tall A-Class sold from 1998 through 2010, but we never considered that a serious small Benz in the proper spirit, nor was it ever offered in the US. Regardless, we've been craving a smaller, premium, sexy sedan all the while.

Mercedes-AMG planning more hardcore A45 hot hatch

The launch of the A45 AMG marked Mercedes-Benz's first real assault on the premium hot hatch segment. And with 355 horsepower from a 2.0-liter turbo four, it is indeed hot. But the latest word has it that Mercedes-AMG is planning an even hotter version. Speaking with Auto Express at the LA Auto Show last week, AMG boss Tobias Moers indicated that his department was toying with the idea of a more hardcore version of the A45. In what Moers referred to as a "street fighter," the A45's engine would be tuned to produce even more power, the cabin stripped out and the rolling stock, brakes and aero upgraded for more serious performance. Think of it, then, as something of a Black Series approach, only it's not expected to carry that name, which has historically been reserved specifically for two-door models. Given AMG's current list of priorities and limited manpower, though, Moers suggests it will be several years – likely towards the end of the model's life cycle – before it may prepare such a model, following a similar formula to the Mini JCW GP and Renaultsport Megane R26.R. Here's hoping an American version based on the CLA could also be in the cards.