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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.

BMW predicts 2 Series Active Tourer will have 75% conquest rate

In the last few years, BMW has definitively proven that it wasn't a slave to its legacy. In the US, the 3 Series was generally associated with smooth, flat-six engines, but the Bavarian brand dropped a four-cylinder turbo into it. The company was also known for its sports sedans, and it went green with the i3 and i8. Now, rear-wheel drive is off the table as defining its vehicles, as well. With the imminent launch of the 2 Series Active Tourer, the Bavarian's models are going front drive and opening up themselves to a whole new group of customers, so the thinking goes.
"We are expecting the Active Tourer will have a conquest rate of around 75 percent," said Frank Niederlaender, a BMW product manger, to Automotive News Europe. If you're not hip to the lingo, that means three quarters of the hatchback's buyers would come from other brands - an impressive figure, if accurate.
When it hits the road, the 2 Series Active Tourer will be the first BMW-branded vehicle to use the company's UKL front-wheel drive platform, already on the current Mini Cooper. The roomy hatchback is aimed at young families looking for a car that is luxurious but can still tote around the tots. It launches in Europe in September to compete against similar models like the Mercedes-Benz B-Class, but the Bimmer isn't crossing the Atlantic to the US until early 2015, according to ANE.

Recharge Wrap-up: GKN electric AWD, $8,500 for Tesla brake repair

A Tesla owner in Canada was quoted $8,500 to repair the brakes in his 2012 Model S. Tesla waived the labor costs, bringing the total price down to $5,824.75. Tesla said that since regenerative braking means the regular brakes get less use, occasional hard braking can help keep them working properly. Also, the salt on the roads in winter leads to corrosion of both the rotors and the calipers. Tesla suggests yearly brake service in harsh climates. Read more at Clean Technica. GKN is launching an electric all-wheel-drive system using its eAxle technology. BMW will be the first to use the system – which is optimized for compact vehicle platforms – in its 2 Series Active Tourer plug-in hybrid. On its own, the electric axle drive offers up to 70 kilowatts (94 horsepower) and 1,475 pound-feet of torque, enough to propel a vehicle up to almost 78 miles per hour under electric power alone. It can also disengage from the driveline when it's not needed in order to reduce rotating losses at higher speeds. Read more from Green Car Congress. The Orange County Transit Authority's (OCTA) first zero-emission, hydrogen powered bus uses a fuel cell from Ballard. The 40-foot ElDorado National Axess bus, powered by Ballard's FCveloCity fuel cell, was funded by the Federal Transit Administration's National Fuel Cell Bus Program. "Clean energy mass transit alternatives, such as this new fuel cell bus in Orange County, are a tremendous example of what can be done to help address clean air challenges," says Ballard Vice President Karim Kassam. "We are excited by the progress being made at OCTA and by others in California." Read more in the press release below. Ballard Module Powers First Zero-Emission Fuel Cell Bus for Orange County Transportation Authority VANCOUVER, CANADA and ORANGE COUNTY, USA – On May 23rd representatives from Ballard attended a ceremony to unveil the first zero-emission fuel cell bus to provide service for the Orange County Transportation Authority (OCTA), one of the largest transit agencies in California. The OCTA bus is the 6th American Fuel Cell Bus (AFCB) configuration delivered in California. Karim Kassam, Ballard Vice President - Commercial said, "Clean energy mass transit alternatives, such as this new fuel cell bus in Orange County, are a tremendous example of what can be done to help address clean air challenges.