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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.

Mini's Super Bowl ad stars Serena Williams and Tony Hawk

Everyone seems to have an opinion about what kind of car a Mini is, and what it says about its driver. For many, it seems, buying one is as much a fashion statement and lifestyle choice as it is anything else. And Mini is out to face those notions head-on in its latest Super Bowl ad. Set to air during the third quarter of the big game on the 7th, the spot brings in a star-studded list of celebrities. Tennis great Serena Williams, soccer player Abby Wambach, hip-hop star T-Pain, major-league pitcher Randy Johnson, skateboard legend Tony Hawk, and actor Harvey Keitel all feature in the 30-second spot dubbed "Defy Labels." The ad was produced by Butler, Shine, Stern & Partners and shines a spotlight on the new Mini Clubman. But you don't have to wait until Sunday to see it: you can watch it right here, and scope out the additional behind-the-scenes video below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. MINI DECLARES DEFIANCE IN STAR-STUDDED GAME DAY AD Woodcliff Lake, NJ – February 1, 2016... As more than 100 million viewers around the world prepare to tune into the big game on February 7, MINI USA is unveiling its star-studded 30-second spot today, set to air in the third quarter of the year's biggest night in television advertising. The ad, created by Butler, Shine, Stern & Partners (BSSP), embraces many of the labels the brand has experienced over the years with a very powerful message: it doesn't care what you call it. "Defy Labels," has its roots in the fact that everyone and everything is labeled but how you handle those labels is what matters. With defiance at its core, the campaign inspires people to shed the labels society has placed upon them and instead define themselves. "Ever since the first Mini was built in 1959, it has been labeled as one thing or another. It's small. It's cute," said Tom Noble, department head, MINI Brand Communications. "This campaign acknowledges those labels in a very authentic way while simultaneously showing people MINI is more than that. With the launch of the new Clubman, our brand is growing up, our products are more sophisticated, and its time to reset the conversation." The brand worked with an ensemble cast of athletes and celebrities to help start that conversation.

First Mini John Cooper Works prototype spied

The highlight of Mini's 2014 Detroit Auto Show stand was the arrival of the John Cooper Works Concept, a sportier version of the three-door hatch that presages the next JCW model on the new platform. Now, we have our first images of the production car undergoing winter testing way up north in Sweden.
Really, the Mini camouflage can't hide what this car is. Between the JCW-branded brake calipers and extra intakes in the front fascia, it's fairly easy to see that this is the sportier version of the car our own Jeremy Korzeniewski wrote about last week. We're expecting the JCW variant to pack a fair bit more firepower than the three-cylinder Cooper he tested, of course. Rumors have circulated that the hottest Mini model could jump to 230 horsepower, up from the current, non-GP car's 208.
There are a number of style features missing here, and while it's entirely possible we'll see things like the JCW Concept's diffuser and side gills arrive when this car is shown in production form (or even further along in testing), their absence in these spy photos is telling. We certainly think this car will become the production JCW Hardtop, but there may be another explanation. The lack of certain aesthetic features means this could be a test of the JCW Engine Kit, which in past Minis slotted in between the standard Mini Cooper S and the factory Works car. We'll admit, it's a long-shot, but there is precedent for it - the JCW Tuning Kit arrived a year before the factory model in the last-generation car. The same reasoning could be used to explain the presence of the JCW-branded brakes, which have been another well-known Mini accessory over the years.