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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.

BMW crushing ActiveE EVs, saving all batteries

It's unlikely to spark a movement and a movie, the way a certain EV1 did a decade ago, but anyone who's seen Who Killed The Electric Car? will likely cringe at this bit of news. Despite the fact that crushing and recycling old vehicles is standard operating procedure in the auto industry, when EVs are involved, it's always a touchy subject. The next phase will see "all of the lithium-ion batteries being repurposed for Battery Second Life research projects." So, what's the news? Well, the image you see above, which comes from the spotting of 16 smashed BMW ActiveE EVs on flatbed trailers on California Route 91 near Los Angeles, CA. EV advocate Chelsea Sexton told Green Car Reports, "It's all very deja vu, right down to [BMW's] DriveNow promotion as a don't-look-behind-the-curtain distraction – recall GM touting EV1s being donated to museums and universities? – and VINs spray painted on the sides, allowing former drivers to identify their own cars." BMW's take on this is that the ActiveEs were always meant to have a limited lifespan, and their time has come. As spokesman Dave Buchko tells AutoblogGreen, "The learning begun with the ActiveE will transition to the next phase with all of the lithium-ion batteries being repurposed for Battery Second Life research projects." (You can read his full statement below.) Originally, there were 700 ActiveEs leased to Electronauts (give or take). Yahoo! Autos points out that the ActiveEs were originally imported into the US as "pre-production" cars, which means they can't be sold, they can only be used for carsharing projects or re-leased. Eighty of those ActiveEs recently found a second life as vehicles in BMW's DriveNow carsharing fleet in San Francisco (bringing the total of ActiveEs in the program to 150) and "some have also been returned to Munich for additional research markets," Buchko said. The big picture here is that no one should be sad to see these cars go. Yes, they may have had some life left in them, but the rules say their time is done and everything is being done to crush responsibly in accordance with the law. Like Plug In Cars says, we're in a completely different era now than we were when GM crushed all those EV1s a decade ago. Instead of marking the end of a plug-in vehicle program, sending the ActiveEs away to be recycled is a symbol of the evolution and growth of BMW's i Project.

Mini JCW Paceman vs. BMW M135i in family faceoff

Over the last year, we've had the chance to drive two of the most exciting hatchbacks in the BMW family - the BMW M135i and the Mini Paceman John Cooper Works - but Autocar has managed to get the two corporate cousins together for a head-to-head comparison. Just like our initial impressions of the Paceman JCW, Autocar has little to complain about this new 215-horsepower hatchback... until it begins to factor in the faster, better-mannered and similarly priced M135i.
Despite laying down an extra 100 hp and delivering a 0-60 time that is almost two seconds quicker, the M135i carries the same price tag of 29,535 pounds in the UK; US pricing for the Paceman starts at $36,200, while it still isn't even clear if the US will be getting the M135i. Even more surprising is the fact that the Paceman falls short of the M135i in regards to rear seat and cargo volume, and just barely squeaks out a win in the fuel economy department. Scroll down to watch the BMW versus Mini hot hatch battle.