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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.

Why BMW doesn't plan to integrate Apple's iOS in the Car

While watching Apple introduce iOS in the Car during its WWDC keynote on Monday, we wondered how automakers, even the 14 who've already signed up to integrate this new in-car functionality of iOS 7, will feel about having the Cupertino company's mobile operating system supplant their own in-car systems. After all, some OEMs like Ford, General Motors and many luxury automakers have sunk millions of dollars into developing their own advanced infotainment, navigation and communication platforms like MyFord Touch, CUE and older systems like iDrive.
One automaker has now spoken up. A BMW spokeperson was interviewed by someone in the news department of British auto dealer group Arnold Clark and confirmed that the company would not be getting in line to integrate iOS in the Car anytime soon. The reason, as we suspected, is that BMW believes its own products developed over the last decade are both plenty good and already so deeply integrated with other systems of the car that, as told to Arnold Clark, "it would not be that straightforward to start changing all of the architecture of a car as has been implied [by Apple]."
While BMW isn't interested in spending more money to integrate Apple's services and functionality over its own, it has spent a good bit already to integrate iPhone functionality in its cars, including the relatively rare ability to support iPod Out and display Apple's own interface on Mini models with the optional Mini Connected feature, as well as committing to integrate Siri 'Eyes Free' functionality.

New Mini EV below the Countryman reportedly debuts this year

In October 2020, Mini provided the broad strokes of the sea-change overhaul coming to its model lineup. In the meantime, we've seen the coming 2023 Countryman and 2023 Hardtop. But haze still surrounds mentions of two more crossovers, one of them electric-only, and what was in store for the five-door hatch and the Clubman. Now that we're closer to sheetmetal reveals, Autocar believes it understands the rundown. Starting at the top of the range, the Clubman takes a fresh design into its third generation, but not a plug-in hybrid powertrain. For some reason, the PHEV didn't get approval under Mini's Power of Choice strategy to provide model lineups with gas, diesel, PHEV, and electric propulsion options. The Clubman will get an all-electric trim, though, and this is thought to be the "compact" crossover Mini mentioned in 2020. This is expected to debut before the end of this year. The third-gen Clubman is expected to grow eight inches longer, making more room not only for growing families and consideration among North American buyers, but also for a smaller model to slide underneath. The new, electric-only small crossover whirrs into this space. It will be built in China as part of Spotlight, which is BMW Group's partnership with Chinese automaker Great Wall. No one has said definitively if this CUV will be sold globally, but Mini's revised production plans will have the hardtop and convertible being built in Oxford, England, the Clubman and Clubman moving from the Netherlands plant to Leipzig, Germany, and the automaker's electric models being built in China. It's hard to believe China won't export any of the electric product, especially considering how important both the crossover and EV segments are to Mini. This small electric crossover and the three-door Hardtop EV are moving to a new platform that can house more battery, a crucial aspect for small offerings to address. The 2023 Hardtop and the small electric CUV are also predicted to debut later this year. it's said the latter won't stick to Mini's retro theme, but sport a "much more radical design." On top of that, Australia's Car Expert reported, "Mini is also set to introduce another premium compact car in an as-yet unrevealed segment, potentially based on the Vision Urbanaut concept." The Mini four-door (five-door in other markets) and Clubman seem headed for the sunset.