2003 Land Rover Discovery S 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.

Environmental group accuses BMW, JLR of link to deforestation in Paraguay

ASUNCION, Paraguay — Environmental group Earthsight said on Wednesday it has linked some of Europe's largest carmakers to the deforestation of the Chaco, a dry forest region of Paraguay home to jaguars and one of the last uncontacted indigenous groups in the world. The group said in a report that livestock companies have illegally logged lands of the Ayoreo Totobiegosode indigenous ethnic group, some of whose members live in voluntary isolation. The livestock skin is used in leather upholstery of luxury vehicles sold by high-end European auto brands including BMW, Jaguar and Land Rover, the group said. UK-based Earthsight said it had made covert visits to tanneries that bragged about supplying the raw material to the luxury car brands. "BMW is using hides sourced from two slaughterhouses processing cows from ranches responsible for illegal [logging] in the Ayoreo Totobiegosode's forests. Jaguar Land Rover didn't dispute sourcing from a Paraguayan tannery that processes hides from another slaughterhouse doing the same," the report said. Jaguar Land Rover said in a statement to Reuters it had found no evidence to verify Earthsight's claims. It said its European suppliers assured sustainability. "We continue  our drive for further transparency and, in this case, the leather supplier in Europe verifies with each raw material supplier that no rural property that directly supplies it is involved in illegal deforestation," the automaker said. BMW did not respond to a request for comment on the Earthsight investigation. Paraguay exports about 50,000 tons of wet-blue leather (tanned, but not dried, dyed or finished) a year, and almost two-thirds of those shipments are bound for Europe, according to the report. Automakers say that leather is a byproduct of the far larger meat industry and high-end cars constitute a comparatively small market niche. But indigenous leaders say deforestation driven by growth in beef and leather exports is encroaching on their territory and destroying their way of life. "As deforestation advances with extensive cattle ranching, they are being imprisoned, they are disappearing," Taguide Picanerai, a spokesman for the Ayoreo community in the Alto Paraguay department, northwest of Asuncion, told Reuters. The region is home to some of the world's highest rates of deforestation, Earthsight said.   Green BMW Jaguar Land Rover

BMW tops Consumer Reports 2023 Brand Report Card

Feels like we wrote about Consumer Reports' 2022 Brand Report Car and 10 Top Picks a few weeks ago, but it was last April. So the mag is back with a ranked roster of 32 brands and 10 vehicles in four categories for your debating pleasure. Starting with the brands, last year's top three were Subaru, Mazda and BMW. This year, the Munich crew climbed two spots to win the prize thanks to "Superb road test scores and solid results in CR’s reliability and owner satisfaction surveys." Subaru narrowly fell to second, maintaining its four-year run in the top three. Mini, eighth last year, jumped five spots to get the last step on the podium. The rest of the top 10 were Lexus (up one spot from last year), Honda (down one spot from last year), Toyota (up three), Genesis (up 12), Mazda (down six), Audi (down three) and Kia (up eight). The magazine and testing outfit says its Brand Report Card "[reveals] which automakers are producing the most well-performing, safe, and reliable vehicles based on CRÂ’s independent testing and member surveys," and that "Brands that rise to the top tend to have the most consistent performance across their model lineups." Last year's top 10 had six automakers from Japan, three from Germany (giving Mini credit for England), none from the U.S. or South Korea, and five luxury brands. This year's list counts five makes from Japan, two from Germany because Porsche fell out of the top ten, two from South Korea, still none from the U.S., and four luxury brands. Buick again ranked as the best domestic, dropping to 12th after being 11th last year. The big mover was Lincoln, its 10-place jump up to 16th attributed to better reliability from the Corsair and Nautilus. Tesla's improved overall reliability saw it climb six spots to 17th. Dodge climbed one spot to 15th. Jeep got out of the penalty box in last to come second-to-last. Land Rover fell three places into the penalty spot.  CR's top 10 vehicle models The 10 Top Picks list is practically a new list. Only two holdovers made it to 2023, those being the Subaru Forester and Kia Telluride.