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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.

Apple lends prestige to a new Mercedes-Benz music system

Not often does Apple offer its name to products or technologies that emerge from beyond the walls of Fortress Cupertino. Could a partnership with Mercedes-Benz signal the start of something new? Mercedes’ new audio system unveiled this past weekend centers on the integration of Apple MusicÂ’s Spatial Audio with Dolby Atmos surround — a music enhancement generally heard in headphone-listening environments — in selected (and optional) Burmester audio systems. Plans are to offer the components initially in the Mercedes-Maybach S-Class, the S-Class as well as the EQE, EQE SUV, EQS and EQS SUV. No prices for the options were announced. Also partnering in the project is the Universal Music Group, one of the worldÂ’s leading music publishers. According to Mercedes, the Dolby tech “empowers musicians and audio engineers to place discrete audio elements or objects in a three-dimensional sound field, which goes beyond the capabilities of standard stereo productions. The system adapts to any playback environment, meaning fans can listen to music with unparalleled clarity that matches the artist's original vision in the studio.” We would expect no less from 31 speakers in a Maybach, powered by a pair of amps churning out 1,750 watts. Imagine Keith Richards cranking guitar through 31 speakers in an enclosed car cockpit. Almost three out of four music consumers say that they listen mostly in a car, says Mercedes Chairman Ola Kallenius. ”Through this exceptional partnership, we are giving our customers the extraordinary in-car audio experience they expect from Mercedes-Benz,” he said. “Both Apple and UMG share our vision and values and, together with Dolby, we will create a seamless and unique experience for our customers." Partnerships between automakers and audio companies have become common in recent years, and there have been mixed results from systems attempting to create a "surround sound" experience that goes beyond stereo. Bose put its systems into General Motors cars decades ago, and others followed, including Bowers & Wilkins, JBL and even the legendary McIntosh. Most recently, famed Italian speaker designer Sonon faber found a home in Maserati's new Grecale, and British speaker maker KEF is working with Lotus.  

Recharge Wrap-up: Mercedes-Benz B-Class Electric Drive goes on sale in Europe, Spain gets Nissan Leaf taxis

The new Mercedes-Benz B-Class Electric Drive goes on sale in Europe on November 3, with deliveries starting before the end of the year. Developed with the help of Tesla, the new electric B-Class offers more than 132 kilowatts (177 horsepower) and 250 pound-feet of torque. It features Economy Plus, Economy and Sport driving modes. An optional radar support system uses the collision prevention assist sensors to help make smarter decisions about when and how to use the regenerative braking. The B-Class Electric Drive also offers an optional Range Plus button, which can unlock more battery capacity when charging for the occasional longer drive. Learn more in the press release below. Racing returns to the streets of Miami for the first time in more than a decade for the Formula E Miami ePrix on March 14, 2015. Formula E has revealed the track layout, which takes the race around the Miami Heat's home court, American Airlines Arena, along the Biscayne Bay. "This event will help to make Miami more of a sports city," says Mayor Thomas Regalado. "In addition, we will show the younger generations that you may have motor racing without noise or pollution." Read more about the event at the Formula E website and see the track layout in detail here. Hyundai has delivered the first ix35 Fuel Cell vehicles to customers in the UK, including clean energy company ITM Power. ITM is responsible for three of the hydrogen refueling stations being built around the EU as part of the Hydrogen For Innovative Vehicles project - the same project that helped bring the Hyundai ix35 (also known as the Tucson) Fuel Cell to Europe. ITM's 700-bar hydrogen stations will be built in London by Spring 2015, each with its own electrolyzer system on site. In the meantime, ITM will use the ix35 for commutes between London and Sheffield, refueling at a site that uses wind-generated electricity from an on-site turbine to power the electrolyzer to make the hydrogen. Learn more in the press release below. Demand for aluminum is expected to climb as China builds more electric cars. Aluminum supplier Novelis says demand will likely increase 30 percent annually for the next 10 years in China, Japan and Korea, and possibly more depending on how China's plan to increase EV use and decrease air pollution shakes out. Read more at Bloomberg. Barcelona and Madrid have received their first all-electric taxis in the form of Nissan Leaf EVs.