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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.

Mercedes chief invites Audi, BMW to compete in F1

Mercedes-Benz didn't just win the Formula One World Championship in 2014 – it positively dominated it. The team won all but three of the grands prix this season, scoring a one-two finish at more than half of them and landing at least one car on the podium at every race without exception. It goes without saying, then, that the German automaker thrives on competition, but now it's welcoming even more. Speaking with Germany's Sport Bild at its homecoming celebration in Stuttgart, Daimler chief Dieter Zetsche welcomed Mercedes' biggest rivals Audi and BMW to join it on the F1 grid. Noting that the three German brands share some 80 percent of the market for luxury automobiles, Zetsche said that F1 would make a natural arena of competition for Mercedes, Audi and BMW to fight for top bragging rights. The three currently compete against each other in front of home audiences in the DTM touring car series – effectively Germany's equivalent to NASCAR – but of the ten races held this year, the majority were in Germany itself, and all of them took place in Europe. BMW last competed in F1 when it bought the Sauber team in 2006, but withdrew from the series in 2009. Despite its progenitor Auto Union having fielded the famous Silver Arrows in pre-war grand prix racing, Audi has never been a player in modern F1 racing, though recent rumors have linked it to a potential foray – spurred by the arrival of sister-company Porsche on its home turf at Le Mans, the departure of several of its key endurance drivers and the hiring of former Scuderia Ferrari chief Stefano Domenicali. Porsche had similarly considered an F1 program before getting the go-ahead to compete with Audi at Le Mans. As for the prospect of Mercedes competing in other international racing series, Zetsche added that year-long preparations for 24 hours of racing at Le Mans didn't present a good cost-benefit ratio in his estimation, but that Formula E (where Audi currently supports a quasi-works entry) would be worth a closer look.

Daimler opens the door on Car2go Black with B-Class carsharing

Mercedes-Benz parent Daimler has finally decided to go to its proverbial mothership to further expand its Car2go carsharing service in Europe. The German automaker has long used its itty-bitty Smart Fortwo vehicles for the program, but now it's kicking off a pilot program called Car2go Black that will share Mercedes-Benz B-Class models in Berlin and Hamburg. Daimler will deploy 100 B-Class diesels in each German city. The company says the cars will be parked at so-called "black" parking spots and won't have to be returned to the same spot when the user is done. Daimler, who says the reservation platform is geared for smartphone use, is planning to expand the program to other European cities with existing Car2go service starting this spring. That's important, since once the system is up an running, you will be able to drive a Car2go Black vehicle from one town in the network to another and not need to bring it back. Car2go first started operations in Ulm, Germany, and made its North American debut in Austin, TX, in 2009. The service now has more than 600,000 members worldwide with access to about 10,000 Fortwos in 25 cities throughout Europe and North America. Car2go chief marketing officer J. Paul DeLong said last month that Car2go is the world's largest global carsharing company. You can check out Daimler's Car2go Black press release below. car2go black: Carsharing with the three-pointed star STUTTGART, Germany, Feb. 4, 2014 /PRNewswire/ -- Daimler Mobility Services offers carsharing with Mercedes-Benz vehicles for the first time Pilot Phase with 200 B-Class vehicles starts in mid- February in Hamburg and Berlin One-way trips and open-ended trips available, within and even between different cities Smartphone-based rental procedure makes usage both easy and flexible Daimler Mobility Services will soon be offering carsharing with the three-pointed star. Under the "car2go black" brand, Daimler Mobility Services GmbH will pilot a fully automated carsharing system with Mercedes-Benz vehicles. The pilot phase will begin in mid-February in Hamburg and Berlin. In the initial pilot phase, select car2go members in those locations can use a network of 200 black B-Class models on short notice. The vehicles can be rented at dedicated reserved parking stations, and do not have to be returned to the same dedicated parking station that the vehicle rental originated from.