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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.

Recharge Wrap-up: VW exec predicts EVs with 375-mile range

Volkswagen says EV ranges over 300 miles aren't too far in the future. Plug-in hybrids are merely a bridge to all-electric mobility becoming more practical for people who need to travel longer distances, according to Dr. Heinz-Jakob Neusser, Volkswagen's head of powertrain development. Energy density is increasing rapidly in new batteries. Speaking about the e-Golf, Neusser says, "I expect the next generation in 2015-17 will increase to around 300 km [186 miles] and the following step will be around 500-600 km [310-372 miles]." Neusser also says he believes that charging infrastructure will improve to catch up with these more advanced batteries. Read more at Motoring. BMW is offering higher incentives for the all-electric i3 than the range-extended version. More buyers are opting for the i3 REx, with its 78 extra miles of range. So, to move the standard i3 (which is already cheaper), BMW is offering $2,000 in incentives for October - double what is offered for the i3 REx. The added incentives help close the price gap between the BMW and other EVs with similar ranges. The deals won't last long, though. According to New Jersey BMW salesman Manny Antunes, BMW's current incentives are "as aggressive as they're going to get" for a while. Read more at Green Car Reports. Honda is changing its research and development process for all cars after a series of Fit Hybrid recalls. The hybrid version, which makes up more than half of all Fit sales in Japan, was the subject of four recalls within nine months. In response, Honda will change the way it develops cars worldwide, with one extra "gate" to pass in the process. Honda will do prototype testing earlier in the research process to see how separately developed components work together before moving onto the car's development phase. It will add time and cost to making cars, but Honda hopes it will help prevent problems - like those that come with a flurry of recalls - down the road. Read more at Automotive News. Featured Gallery 2015 Honda Fit Hybrid View 16 Photos Related Gallery 2014 Volkswagen e-Golf: Frankfurt 2013 View 15 Photos Related Gallery 2014 BMW i3: First Drive View 33 Photos News Source: Motoring, Green Car Reports, Automotive NewsImage Credit: Honda Green Plants/Manufacturing BMW Honda Volkswagen Electric Hybrid recharge wrapup

Volkswagen completes design work on new EV platform

Volkswagen has completed the design work for its modular, MEB platform that's geared specifically for electric-vehicle production, Automotive News Europe says, citing comments Volkswagen development head Frank Welsch made at CES in Las Vegas last week. Additionally, VW's Skoda and Seat divisions may use that platform for their own plug-in vehicle models. VW's Audi division is also considering employing the platform, though adoption by Volkswagen's Porsche unit is unlikely. VW expects to start selling its first model specifically designed as an EV (i.e., not converted from existing conventional models such as the Golf and Up!) by 2020. Welsch added that the MEB platform may be used as a base for updated electrified versions of Golf, Tiguan, and Passat. Meanwhile, Skoda will debut as many as five plug-in models by 2025. Europe's largest automaker is looking to further distance itself from the 2015 scandal that involved software that cheats diesel-emissions testing efforts and has cost the company more than $15 billion in US settlements alone. All told, VW and its divisions expect to debut as many as 30 plug-in vehicle models within the next decade. Volkswagen unveiled its I.D. concept vehicle, which is based on the MEB platform and looks somewhat like the BMW i3 electric-vehicle model, at last year's Paris Motor Show. VW said at the time that the vehicle could go as far as 373 miles on a single charge. Additionally, VW will show off an electric SUV concept model at this year's Shanghai Auto Show, and is unveiling a microbus version of the I.D. concept at the Detroit Auto Show this month. Related Video: Featured Gallery Volkswagen I.D. Concept: Paris 2016 View 16 Photos News Source: Automotive News Europe-sub.req. Green Volkswagen SEAT Skoda Green Automakers Electric Hybrid meb