2011 Lotus Evora 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.

Lotus confirms new Emira will be its last car powered by gasoline

Lotus is four years into the 10-year Vision80 plan that it announced at its 70th anniversary in 2018, and according to Matt Windle, managing director of Lotus Cars, the brand is "on track" to completely revitalize its line of sports cars as it branches out into profitable new automotive segments. Windle also confirmed the name of Lotus' upcoming new vehicle: "The spirit and passion that gave the world the Elise, Exige and Evora will live on in the next generation of cars – cars like the all-new Lotus Emira." The British company's sports car replacement, previously known as the Type 131, will make its virtual debut on July 6 before being shown in public at the Goodwood Festival of Speed that begins on July 8. Lotus confirmed that the Emira will be offered solely with internal combustion engine options and will not offer hybrid power, and that the powerplant comes from "an exciting new powertrain partnership" with options that are "new to Lotus." The company's Elise, Exige and Evora used four- and six-cylinder engines sourced from Toyota and tuned specifically for high-performance use. The Emira, which will be priced similarly to the Evora, will be the last production Lotus powered by gasoline, and it will be built atop a brand-new "Elemental" platform that relies on the brand's familiar extruded aluminum-intensive chassis. Three more platforms are currently in development, and these four architectures will provide the basis for the company's planned expansion. The next we expect to see in production is the Hypercar architecture that forms the basis of the upcoming Lotus Evija. The electric Evija and its "Extreme" platform will start rolling out of the Hethel headquarters later this year. Lotus' "Evolution" platform is next, and it will underpin "an all-new range of lifestyle vehicles" that "will catapult Lotus into a new era of higher retail volumes and significant revenues." We take that to mean SUVs. This Premium architecture was reportedly designed by Lotus in the UK with collaboration from other brands under the Geely umbrella in China and Sweden and Germany. Finally, Lotus and Alpine have consummated their recently announced partnership and will launch an "E-Sports" platform that will be "will be flexible and modular." We expect a range of electric vehicles on this architecture that could include everything from sports cars and hatchbacks to crossovers and other utility shapes.

Renault considers fielding its own F1 team again

Renault has a long history in Formula One, but while it successfully ran its own team until 2010, these days it participates only as an engine supplier – and just to the two Red Bull teams. That could be changing in the near future, though, as the latest reports indicate that the French automaker is considering fielding its own team once again. According to Autosport, the company has ruled out starting its own team again from scratch, but it is weighing the possibility of buying an existing team. The last time it competed was when it took over the championship-winning Benetton team in 2002, building it back up to win back-to-back world titles in 2005 and 2006. It subsequently dropped in form until Renault sold the team in 2011 to Genii Capital, which has run it under the Lotus banner ever since. The Lotus team continued using Renault engines with limited success until this season when it switched to Mercedes. With Caterham now gone from the grid, that leaves Renault with only one customer: Red Bull, which runs both the Red Bull Racing and Scuderia Toro Rosso teams under Renault power. It's a situation in which the French company apparently doesn't particularly revel, leading it to consider buying a team again and running it in-house. Considering the difficulty the Lotus team it once owned has encountered lately, reacquiring its old operation could prove the most logical step for Renault, but of course that doesn't mean that's what it will ultimately do. It could continue strengthening ties with Red Bull until it acquires a large portion of it (or Toro Rosso) – something which Audi is said to be eying as well. Or it could look to another team altogether. Mercedes, McLaren, Ferrari and Williams may not be up for sale, but we could easily see Renault taking over cash-strapped Force India or Sauber, or even pouring its resources into getting Caterham or Manor/Marussia back up to speed and whipping it into winning form. News Source: AutosportImage Credit: Franck Robichon/AP/Pool Motorsports Lotus Renault F1