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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.

Jaguar XF Sportbrake is the cure for the common F-Pace

Before Jaguar introduced the F-Pace crossover, the only way an American could get their hands on a long-roof leaper was to either move to Europe and buy an XF Sportbrake or pick up the rare X-Type Sportwagon on the used market. But now that the F-Pace is on sale, there's no need for a Jag wagon (henceforth known as the Jagon), right? Wrong. Spotted lapping the Nurburgring, the second-generation XF sedan transitions to wagon duty as naturally as the first-gen car did, promising a boost in cargo capacity without sacrificing the good looks of Jaguar's middle child. But the sloping roofline won't do the XF's versatility too many favors – as our spies rightly state, it looks like Jag's designers are favoring style over outright cargo space. Beyond the roofline, expect the new Sportbrake to follow its predecessor's example and adhere very closely to the XF sedan. Don't expect any changes from the firewall forward, with most of the changes above the beltline and at the tail, where Jag's designers obviously need to rethink the look to accommodate the rear hatch. The overall taillight shape should stay the same, while the lower bumper will carry over with only modest adjustments. Under hood, our spies report the car shown here is Jaguar's potent S trim, with a 380-horsepower, 3.0-liter, supercharged V6. While it's a safe bet that Jaguar will sell the Sportbrake in Europe with all the lesser XF engines – not to mention R and RS variants – it's unlikely all three mainstream engines will arrive in the US. Oh yeah, our spies claim there's a chance the long-roof XF will hit the US market. We're calling it a very slim chance, though. Audi and BMW deported their A6/5 Series wagons years ago, leaving the segment to the Mercedes-Benz E-Class. The Volvo V90 will add some Swedish flair to the segment, but the bottom line is that importing and federalizing a new model to compete in a segment responsible for just 20,000 units per year isn't good business. Here's hoping Jaguar makes a bad business decision. Related Video: Featured Gallery Jaguar XF Sportbrake: Spy Shots View 11 Photos Image Credit: CarPix Spy Photos Jaguar Wagon Luxury jaguar xf sportbrake

Jaguar Land Rover said to favor Europe rather than US for new plant

With its plants running at full tilt, Jaguar Land Rover is in desperate need of additional manufacturing capacity. That's led to reports that the Indian-owned British company was looking to join European, Japanese and Korean automakers in America's southern states, all while it opened new plants in the UK and China. The company even announced it would be building the Land Rover Discovery Sport in Brazil. Now, though, reports are suggesting that JLR is looking at Europe for a new facility, rather than the US, with Automotive News claiming the company's execs are eyeing the lower costs afforded by Austria and Turkey. The report cites the Birmingham Post (UK), the broadsheet that's closest to the company's headquarters. According to the original report, labor costs and wage disputes with unions are ruling out another factory in the UK, while those same disputes with labor outfits may also be souring the automaker on a US facility. "At this stage Europe seems more likely than America. The union pay dispute had a big effect," an unnamed source told the Post. "There is a feeling of alienation that has been left over from the way the pay talks were handled." JLR, meanwhile, offered a solid no comment to the Post, with a spokesperson saying, "No decision has been taken on future manufacturing locations. We will continue to evaluate opportunities to increase our manufacturing footprint in the future." Related Video: