on 2040-cars

Auto blog

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.

EPA: Four 2014 Mini Cooper models need to drop mpg numbers

After the huge problems that Hyundai/Kia experienced with its mislabeled fuel economy labels, you'd think that any time an automaker has to adjust its mpg numbers, heralds would be shouting from the rooftops. But, after Ford admitted to three big mistakes with its numbers for the 2013 C-Max Hybrid and Mercedes-Benz had to lower the fuel economy rating for the C-Class, we understand if those heralds are a bit tired by now. The models affected include the 3-door and the 3-door S. Still, today's news is that BMW has to lower the fuel efficiency numbers for four versions of the 2014 Mini Cooper thanks to an audit conducted by the EPA and then some joint re-testing. The models affected include the 3-door with the 1.5-liter engine and the 3-door S with its 2.0-liter powerplant, with both manual and semi-automatic transmissions. As with the Benzes, the rating changes are not big ones, around one or two miles per gallon. The big exception is the manual S 3-door's highway number, which lost four mpg from 38 to 34. You can see all the numbers, new and old, in the press release below, but the EPA isn't saying what caused the problem this time. The Agency's new test procedures can't come fast enough. It should be noted that the 2015 Mini Cooper was recently delayed a bit because of the extra time it took to get the EPA numbers right. There's no confirmation that these two items are connected, but we would not be surprised to hear they were. EPA Requiring BMW to Correct Fuel Economy Labels for Four Mini Cooper Vehicles Washington - The U.S. Environmental Protection Agency (EPA) is revising estimates for four 2014 BMW Mini Cooper vehicles to ensure consumers are given accurate fuel economy values. The EPA performed a fuel economy audit on the BMW Mini Cooper and obtained values that differed from those BMW submitted to EPA for certification. With EPA oversight, BMW conducted new emissions and fuel economy testing, and EPA conducted its own testing at its National Vehicle and Fuel Emissions Laboratory in Ann Arbor, Michigan. As a result of this subsequent testing, EPA is requiring BMW to relabel four of its 2014 Mini Cooper models with lower fuel economy values. The specific changes to fuel economy stickers are listed in the table below.

2016 Mini Clubman opens its many doors to the world

We've seen the spy shots. We've seen the teasers. We've seen the concepts and the video-game racers. And now the wait is finally over for Anglophile motorists as Mini has officially taken the wraps off the all-new Clubman. Larger than the model it replaces and with more useful apertures, the new 2016 Mini Clubman slots into the marque's new lineup above the four/five-door version of the core Hardtop hatchback. It measures a useful 10.9 inches longer than the Hardtop, 2.9 inches wider, and rides on a wheelbase that's four inches longer. It's also a big larger than the outgoing Clubman, which had been on the market since 2007. In fact, though it sits a few inches lower than the Countryman crossover, the new Clubman is touted as the longest and widest Mini yet. Size isn't the only element that sets the new Clubman apart from its predecessor, though. It's also got a more conventional door arrangement, with four proper, forward-hinged doors instead of the unusual suicide door on the outgoing model that opened onto the curb in countries where they know on which side of the street to drive, but into traffic in its own home market. The split tailgate doors carry over, however, and can be optionally operated hands-free to give access to 17.5 cubic feet of cargo space, or as much as 47.9 cubic feet with the split rear seats folded flat. The new Clubman, however, isn't just positioned as a more utile version of the smaller hatch, but as Mini's flagship model. There are even new interior trim choices available to that effect, including a diamond-quilted blue leather patterned after a classic English Chesterfield sofa. Naturally, it also packs all the technological advancements you'd expect of the latest product from the BMW Group. Though diesel options will be offered overseas, American buyers will be able to choose between Cooper and Cooper S specifications. The former comes with a 1.5-liter turbocharged inline-three with 134 horsepower and 162 pound-feet of torque, good for an 8.9-second 0-60 time and a 127-mile-per-hour top speed with either a six-speed manual or automatic transmission. The Cooper S upgrades with a 2.0-liter turbo four good for 189 hp and 207 lb-ft, to reach 60 in 7.0 seconds flat with the six-speed manual or 6.9 with a new eight-speed automatic, topping out at 142. Despite the added size, Mini promises the new Clubman will offer the same go-kart handling for which the brand has become known.