1997 Toyota Land Cruiser 40th Anniversary Fzj80 Fj80 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.

Recharge Wrap-up: Q50 Hybrid video, Iran's biodiesel weed

A new video from Infiniti showcases the Q50 Hybrid's kinetic energy recovery technology, borrowed from Formula One. The video details what is going on inside both the Q50 Hybrid and the racecar when it gathers energy to store for later use, offering better performance than an internal combustion engine alone. In the Q50 Hybrid, that electric energy helps the car accelerate from 0-60 in 4.9 seconds. The video also serves to highlight the relationship between racing innovation and performance and efficiency improvements in production vehicles. See the video above. The 2015 Toyota Prius C has been named a Top Safety Pick by the Insurance Institute for Highway Safety (IIHS). The compact hybrid, updated for the 2015 model year, has been upgraded from a "poor" to "acceptable" rating in the small overlap crash test, placing it on the Top Safety Pick list. Beginning in the 2016 model year, cars will have to score a "good" rating on the test to make the list, which means further improvements will be necessary if Toyota wants the Prius C to maintain its safety status with the IIHS. Read more at Green Car Reports. A couple in Tennessee have been found guilty of scamming the state in a fake biodiesel scheme. John and Lisa Brichetto's Northington Energy LLC received a state loan to produce biodiesel in 2011, but the facility never started production and was later foreclosed upon. In addition to the $142,215 the Brichettos defrauded from Tennessee, the state also invested in utilities and roads, while the US Department of Agriculture also paid for site improvements. Read more from the Times Free Press. Researchers in Iran have developed a way to make biodiesel from a weed. Scientists at the Islamic Azad University have created two liters of biomass for biofuel from flixweed. Flixweed, also called herb-Sophia and tansy mustard, is a non-edible weed that grows in various climates with little to no effort. It was found to contain 22 percent oil and fatty acids, and the biomass contains oxygenated chemical components. "This issue is important because the atomic oxygen in the fuel of a car directly cuts exhaust and the dangerous carbon monoxide and cancerous particles suspended in air," says Mehdi Alami, a chemistry graduate working on the project. Read more at Press TV.

Toyota reaches $1.2B unintended acceleration settlement in criminal probe

UPDATE: Just like that, Toyota has released an official statement confirming its $1.2-million dollar settlement with the US Attorney's Office. Our story has been updated to reflect this development and the automaker's official statement has been added below.
Toyota has reached a settlement over the criminal probe into its unintended acceleration problems, and the outcome is more expensive than first expected. The Japanese automaker has agreed to pay $1.2 billion to close the investigation among other settlement terms. The criminal inquiry focused on whether the company kept information from regulators and how it handled drivers' complaints about the problems, according to the sources.
Between 2009 and 2010, Toyota ended up recalling over 10 million vehicles worldwide over sudden acceleration fears. Fixes include modifying floor mats, gas pedals, and installing brake override software on affected models. In addition, Toyota made the latter standard on all of its new vehicles.