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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 tests autonomous vehicle technology with 100-car fleet

Jaguar Land Rover is exploring how to take autonomous vehicle technology off the paved path. But the company has plans for technology on tarmac, too. The company announced that the Jaguar division will have a fleet of 100 cars testing autonomous technologies on public roads. The testing process will cover a period of four years and begin with vehicle-to-vehicle and vehicle-to-infrastructure communication systems, along with a stereo camera system and autonomous vehicle software. These systems will work together to provide a variety of features that could make their way into future Jaguars and Land Rovers. The first feature in development is called "Roadwork Assist." The system relies on the stereo camera to create a 3D image the car's software can analyze. The software can identify road cones and other barriers associated with construction sites. The car will then alert the driver about entering the construction zone and provide some steering assistance to keep the car centered in its lane. Tony Harper, Jaguar's head of research, said that this system can reduce stress on the driver, and the technology could eventually be used to allow the car to pilot itself through construction zones. Another of Jaguar's proposed features is "Safe Pullaway," which also relies on cameras and software. The Safe Pullaway feature is designed to prevent close-proximity collisions in traffic jams and even in the garage. To do this, the car watches the area immediately ahead of it for obstacles. If the car detects something nearby while the driver adds throttle or shifts into gear, it will apply the brakes to prevent driving into the object. The final project on Jaguar's plate is its "Over the Horizon Warning" system. This will be one of the first features to rely on Jaguar's vehicle-to-vehicle communication technology. The idea is that connected cars in constant communication will give drivers additional warning of upcoming hazards, such as out-of-sight animals and slowed or stopped cars. In Jaguar's example of a stopped car, the stationary vehicle would send a signal alerting approaching cars of the situation. In turn, the approaching vehicles would trigger audible and visual warnings to drivers about the hidden car. Jaguar says that the system could also be applied to emergency vehicles. Emergency vehicles would broadcast a signal to alert drivers well before the lights and sirens get their attention. This would give emergency vehicles a faster, safer path through traffic.

Jaguar Land Rover opens winter testing facility in Minnesota

As it begins the rollout of the all-wheel-drive Jaguar XJ and XF models, Jaguar Land Rover has just announced that it has opened a new facility in northern Minnesota for winter testing. Located in International Falls, MN (on the US and Canadian border), the British automaker says it is one of the coldest locations in the Continental US. Jaguar's new Instinctive All Wheel Drive system was developed primarily to help sell more cars in the northern US, so it only makes sense to open a testing area in the US as well.
With temperatures that can drop to minus 55 degrees Fahrenheit, International Falls was chosen to mimic some of the worst weather a Jaguar or Land Rover will ever see. The grounds house testing chambers, various road surfaces and even a frozen lake. This new facility complements the hot-weather testing grounds in Phoenix, AZ.
The official press release is posted below.