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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.

Bentley teases new Flying Spur's 3D diamond leather upholstery

Playing the long game before unveiling the new Flying Spur, Bentley's published the second teaser for the new "luxury grand touring sedan." The last one homed in on the retracting "Flying B hood" ornament. This one focuses on what Bentley says is "an automotive world-first," three-dimensional textured leather lining the cabin. Created by Crewe's craftsmen and demonstrated on the door panel, the leather adopts a diamond-quilted pattern, but without stitches indicative of quilting. Up close, it looks like the leather simply adheres to a complex relief form. That's trick we expect to be one of many that will supposedly "set new standards for contemporary craftsmanship." The coming third-generation Flying Spur will want to come out of the gate with just such goals. When the first generation arrived in 2005, it became the Toyota Camry for rich people. The second generation — which still rides on that original platform — blanched in the heat of competition from Bentley's own lineup, on top of competition from the Mercedes-Maybach below and cross-country rival Rolls-Royce Ghost. The new model is all new, from the MSB platform shared with the new Continental GT and Porsche Panamera, to a design that will put more separation between the two-door Continental and the four-door Flying Spur. Expect the 6.0-liter W12 with 626 horsepower and 664 pound-feet of torque as the marquee engine, and a 4.0-liter twin-turbo V8 with 542 hp and 568 lb-ft as the economical choice. Eventual V8 S and Speed models will wring more grunt from those two engines. A plug-in hybrid will debut some point, based around a 2.9-liter V6. We don't know when the debut will happen, perhaps as soon as Pebble Beach in August, or as late as the Los Angeles Auto Show in November, or the Frankfurt Motor Show in between. If you're keen on keeping up in the meantime, you can "register your interest" at NewFlyingSpur.com. As others have noted, the honorifics in the dropdown list at the site include "Lord" and "Sheikh," because titles matter even more at $200,000 before options.

Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati