1975 Rolls-royce Corniche Convertible, Left Hand Drive, Pale Yellow, Power Top, on 2040-cars

Auto blog

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.

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Rolls-Royce commemorates end of Phantom with Zenith models

Rolls-Royce will discontinue the current generation Phantom in 2016 after 13 years. Rolls will also axe the Phantom Coupe and Drophead Coupe in November, and the company won't build new versions of them on its future platform. However, the automaker will send off the pair in style with special edition models. The Phantom sedan will eventually return on Rolls' future aluminum platform, which will underpin all of the company's models. Spy shots suggest minor design tweaks for the new generation Phantom, but there's no mistaking the massive vehicle's chiseled shape. The overall size should remain similar to the current one, but the lightweight metal and carbon fiber should dramatically reduce the weight. Rumors suggest it would still use a V12 for propulsion, and there could be a plug-in hybrid variant later. "I am proud and excited to announce that a new Phantom is on the way – a contemporary and beautiful Phantom enhanced with cutting-edge technologies and design innovations." Rolls CEO Torsten Muller-Otvos said. Rolls will also build 50 Zenith versions of the Drophead and Coupe to give the pair a proper farewell from the lineup. These special vehicles will include a Tailgate Hosting Area to party with class, laser-etched armrests that show the launch sites for the 100EX and 101EX concepts, custom instrument dials, a special version of the Spirit of Ecstasy, and more. "Zenith will be the sum of all the best features of Phantom Coupe and Drophead Coupe, with a few surprises added," Giles Taylor, the company's director of design, said. Related Video: ROLLS-ROYCE MOTOR CARS BRINGS SEVENTH GENERATION OF PHANTOM TO AN END Rolls-Royce Motor Cars Chief Executive Officer, Torsten Mueller-Oetvoes, has announced that the current Phantom will enter the last stages of its celebrated life in 2016. This announcement follows the recent news that Rolls-Royce Motor Cars has begun testing its all-new aluminium architecture, which will underpin every future Rolls-Royce arriving in-market from early 2018. He also announced that Phantom Coupe and Drophead Coupe models will not be renewed in the future. These two magnificent Phantom models will end their lives with a special collection of only 50 highly desirable cars to be called Phantom Zenith. The current seventh generation of Phantom started production in Goodwood over 13 years ago and quickly became the foundation upon which the renaissance of Rolls-Royce Motor Cars was built.