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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.

Hyundai tops VW and Buick in China, survey says

You may be aware of the long-time competition in China between Volkswagen and Buick, but another brand apparently should be in that conversation too: Hyundai. In a recently published annual consumer survey, the Korean company actually took the top spot to beat out its German and American rivals in second and third, respectively. The results were part of the China Brand Power Index that interviewed 11,500 people around the nation and was paid for by the country's Ministry of Industry and Information Technology. While Hyundai proved popular with voters, its sales haven't necessarily shown that yet. According to Bloomberg, the brand had falling numbers in China for the first quarter of the year. Even Ford outsold the South Korean automaker in the same period, despite scoring lower on the survey. Meanwhile, Audi ranked as the populace's favorite luxury brand, which is hardly a surprise given the Four Rings' strong sales in China. In January alone the automaker saw a 15-percent boost in volume there. Parent company VW's strong performance was somewhat more surprising, though. State media severely criticized the German automaker in March, and customers protested last year for the allegedly poor handling of a recall.

Volkswagen names Piech's nieces to supervisory board

Volkswagen was left with two vacancies on its supervisory board after Ferdinand Piech and his wife Ursula were forced out a few days ago, and now it's filled them. Intriguingly, however, both of the new directors are Piech's nieces. The most obvious connection is Julia Kuhn-Piech, a real-estate professional who has sat on the board of VW's Man truck subsidiary since last year. Kuhn-Piech, 34, is the daughter of Ferdinand's younger brother Hans-Michel Piech (and by extension, niece of the ousted chairman). The other seat is being filled by Dr. Louise Kiesling, 57, a designer and daughter of Ferdinand's late older sister Louise Daxer-Piech. Keeping track of the lineage of the Porsche-Piech clan can be confusing, particularly with so many Ferdinands and Louises, but it breaks down essentially as follows: All are descended from Ferdinand Porsche, founder of the eponymous automaker and credited as the designer of the original Volkswagen Beetle. Porsche had a son and a daughter, the latter being Louise Porsche, who married Anton Piech and had four children: Ernst, Louise (mother of incoming board member Louise Kiesling), Ferdinand (the ousted chairman) and Hans Michel, father of the other incoming board member Julia Kuhn-Piech and a board member of both the Volkswagen Group and Porsche SE as well. The Piech and Porsche families control Porsche SE, which holds 50.7 percent of shares in the Volkswagen Group, which in turn owns Porsche the automaker. With all that in mind, appointing other members of the Piech-Porsche clan to the board follows logically enough - particularly since other members of the family helped oust Ferdinand from the chairmanship in the first place. The nominations, incidentally, also help VW increase its proportion of female board members. The two incoming Piechs will join Annika Falkengren of Swedish bank SEB and Babette Frohlich of the same IG Metall union as the board's interim chairman Berthold Huber. Wolfsburg, 30 April 2015 Dr. Louise Kiesling and Ms. Julia Kuhn-Piech appointed new members of the Supervisory Board of Volkswagen AG Upon application by the Board of Management of Volkswagen AG, Dr. Louise Kiesling and Ms. Julia Kuhn-Piech were today appointed members of the Supervisory Board of Volkswagen AG by Braunschweig Local Court with immediate effect. The appointments were made pursuant to Section 104 of the Aktiengesetz (German Stock Corporation Act) and were occasioned by the recent resignations of Prof. Ferdinand K.