2007 Bmw M5 on 2040-cars

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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 negotiates Daimler alliance, buys out car-service partner Sixt

Sixt sells its stake in DriveNow car-sharing to BMW BMW in talks with Daimler to combine car-sharing Combining car-sharing business to aid robotaxi plans FRANKFURT — Germany's BMW has bought out partner Sixt from their joint venture DriveNow, paving the way for a broader car-sharing and driverless taxi alliance with Daimler to compete against Uber and Lyft. Car rental company Sixt said on Monday it would generate an extraordinary pre-tax profit of about 200 million euros ($248 million) in 2018 from the sale of the DriveNow stake to BMW for 209 million euros. "With DriveNow as a wholly-owned subsidiary, we have all options for continued strategic development of our services," said Peter Schwarzenbauer, BMW's board member for Digital Business Innovation. "Our experience with mobility services supports our development of future autonomous, electrified and connected fleets," he said, adding that BMW aims to have 100 million customers for "premium mobility services" by 2025. The Sixt deal comes as BMW moves closer to a deal to combine its car-sharing services with Daimler's Car2Go, a person familiar with the discussions told Reuters last week. The German carmakers want to build a joint business that includes car sharing, ride-hailing, electric vehicle charging, and digital parking services, a senior executive at one of the companies said on Monday. Mercedes-Benz parent Daimler and BMW declined comment on the status of potential talks on their car-sharing business. "This is speculation, we do not comment," BMW said. The senior executive, who declined to be named because the plan is not public, said: "This will create an ecosystem which can also be used for managing robotaxi (driverless taxi) fleets." BMW would contribute its ParkNow and ChargeNow businesses to the common company, the executive said, adding that there were still differences of opinion over the valuation of Car2Go. The market for ride-hailing services currently makes up around 33 percent of the global taxi market, and could grow eightfold to $285 billion by 2030, once autonomous robotaxis are in operation, Goldman Sachs said in a recent research note. BMW and Daimler are now working on developing autonomous cars, vehicles which could enable them to up-end the market for taxi and ride-hailing services.

Karma Automotive partners with BMW for powertrains

Now in the process of rising from the ashes of Fisker, the newly renamed Karma Automotive has announced a powertrain supply deal with BMW. Only instead of Karma providing BMW with technologies (as Tesla has for Daimler and Toyota), this deal goes the other way around. It is BMW that will be providing Karma with its powertrain components moving forward. Little in the way of specifics was disclosed regarding precisely what the supply deal will entail. However according to the statement below, it will include "high voltage battery charging systems and a wide range of hybrid and EV systems." BMW has demonstrated its competence in developing and manufacturing such components with vehicles like the i3 and i8, and ActiveHybrid versions of the 3 Series, 5 Series, and 7 Series sedans. Karma Automotive is what Chinese component manufacturer Wanxiang renamed the company formerly known as Fisker Automotive once it acquired the rights to the company and the Fisker Karma which it previously produced. The brand name, however, remained the property of Henrik Fisker's coachbuilding operation. The original Fisker Karma was powered by a 2.0-liter turbo four supplied by General Motors, with a lithium-ion battery pack from A123 systems. Karma Automotive Signs Supply Agreement With BMW COSTA MESA, Calif., Nov. 12, 2015 /PRNewswire/ -- Karma Automotive announced today that BMW has agreed to be a supplier in ensuring their vehicles are built with the highest quality automotive parts. BMW will supply Karma Automotive with their latest powertrain components, including high voltage battery charging systems and a wide range of hybrid and EV systems. Throughout automotive history, BMW has been globally recognized for engineering and manufacturing world-class products. They are a proven technology leader and renowned for conceiving and delivering groundbreaking innovations. Karma Automotive will integrate the first BMW components into its plug-in hybrid flagship vehicle, which will re-launch in 2016. The next generation of vehicles already in development will utilize more of BMW's powertrain technology. "The Wanxiang Group is giving Karma Automotive the opportunity to bring a stunning car back to the market, and the partnership with BMW and their outstanding track record is a great fit for the future," said Karma's CEO Tom Corcoran.