Auto blog

BMW i3 with range extender could arrive after HOV stickers run out in CA

We will weep for the BMW i3 REx owner with ticket #40,001 for California's green HOV stickers. While the standard-issue battery-electric i3 has been deemed eligible for the state's white stickers, which allow for owners to drive in HOV lanes solo, the proverbial jury of the California Air Resources Board (CARB) is still out on the BMW i3 REx, which will have a little-bitty range-extender on board, Transport Evolved says. The issue is that, while there is an unlimited number of white stickers for pure EVs such as the Nissan Leaf and Tesla Model S, the state has limited the number of green stickers, which grant solo-HOV access to plug-in hybrids and extended-range plug-ins, to 40,000. And with almost 29,000 green stickers given out as of the end of last year to cars such as the Chevrolet Volt and the Toyota Prius Plug In, they may run out within two months. The other key point is that the waiting list for the i3 with a range extender is running at about six months as of January, that could cause a bit of hand-wringing among folks looking to buy the REx. BMW said earlier this year that the extended-range version of the i3 would qualify for white stickers because the car is a so-called BEVx, meaning that its range-extender's full-tank range is less than the electric motor's single-charge range. BMW designed the i3 with a small range-extender tank of just 2.4 gallons, but the automaker estimated that California's green stickers wouldn't run out until the end of 2014.

BMW to announce location of new plant in Mexico in July

Volkswagen manufactures in Mexico. Soon Audi will as well, and Mercedes-Benz is said to be working on a deal to assemble some of its cars at a Nissan plant in Mexico too. That leaves BMW out of the mix of German automakers building cars South of the Border, but that may soon be rectified, as well.
According to Automotive News, the Bavarian automaker is preparing to announce the site of its first Mexican assembly plant as soon as July, now just two months away. BMW already builds cars for North American consumption at its plant in Spartanburg, South Carolina, but has reportedly been keen to capitalize on cheaper labor and the benefits of the North American Free Trade Agreement to supply vehicles to the United States and Canada especially.
When BMW does announce the site of the plant - reportedly narrowed down to either Hidalgo or San Luis Potosi - it is tipped to work its way up to 100,000 vehicles per year at the new location, potentially to include the 3 Series as well as smaller, front-drive models, including Minis.

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.