2012 Mini Cooper 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.

Mini USA will temporarily stop importing manual transmissions

Emissions certification woes strike again, this time at Mini. The U.S. arm of Blighty's iconic car company has had to temporarily put a stop to importing any models with manual transmissions beginning with July production, which is when BMW typically begins rolling the new model year down assembly lines. According to MotoringFile, calibration testing for the six-speed manual is taking longer than expected. The outlet guesses the interruption will conclude by September, because it has "seen these type of delays in the past and they've lasted from 1-4 months." It has queried the brand's head of communication, who said, "As much as we at MINI USA would like to have a definitive timeline, it would be too early to say." The spokesman did, however, say that Mini remains committed to the manual gearbox. That comes in contrast to Toyota's recent breakdown of manual take-rates across a range of vehicle types, Hyundai jettisoning the manual on the 2020 Elantra, and stalwart enthusiast rides like the Ford Mustang Shelby GT500 and Chevrolet Corvette leaving the stick-shift fold. Nevertheless, Mini's efforts feel, at best, like raging against the dying of the light, especially because the end of the MF report states, "the other big news is that Mini USA is also eliminating the manual option from some models all-together." MF isn't yet certain about which models are affected, though. Buyers stepping up during the row-your-own intermission will get a crack at the long awaited seven-speed dual-clutch transmission or a revised eight-speed automatic. The DCT will slide into the Cooper and Coooper S models, the traditional automatic makes a home in the 301-horsepower John Cooper Works Clubman and Countryman.

Honda engines and giant killing in the classic Mini Cooper

Electric Federal has taken a fresh look back at the enduring legacy of original Mini with a video interview with Heritage Garage's Graham Reid, one of the foremost experts on classic Minis. As Electric Federal points out, it's important to remember that the Mini did not start out as a performance car. It was built in response to the Suez Canal crisis of the mid-50s, which had a similar effect on British gas prices as OPEC did on American prices in the 1970s - rationing and rapid price jumps.
Through the years, Minis have grown from their budget roots to become seriously competent performance machines. As Reid says, a 150-horsepower Mini on the right track should have no problem outpacing a contemporary Porsche 911.
For some time now, classic Mini owners have been dropping Honda engines under the tiny hoods of their classics. With up to 250 horsepower pulling a car that tips the scales at barely 1,200 pounds, the upgraded Mini is "a real sleeper," Reid says. Interestingly, Reid doesn't mention another increasingly common swap in the Mini community - Suzuki Hayabusa-powered Coopers.