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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.

Next-gen BMW 5 Series sedan spotted with production body, possible PHEV

The current BMW 5 Series is just a few years old since its 2009 debut, but the Bavarians are already preparing to put the model out to pasture. Here's our first glimpse at the production bodywork for the next-gen sedan after spotting the wagon version during testing – twice. While the cladding and swirling camouflage make specific details difficult to discern, it doesn't look like we should expect any massive changes in design language from the new model. The nose appears to dip a bit more at the tip of the front end, but otherwise there's no way to mistake this as anything other than a 5 Series. Squint hard enough at the front left fender and you can notice what seems to be a small door. Our spies think that this might be hiding the charging port for a plug-in hybrid version. While the styling doesn't appear to be changing much, the next 5er reportedly has a new platform underneath the skin that supposedly will help it shed around 220 pounds. The debut for this lighter but likely similar looking BMW is expected sometime in 2016.

BMW i8 pitted against M4 in sibling rivalry track battle

We recently watched Auto Bild challenge the BMW i8 against the M4 in a German drag race of decide the quicker of the inter-brand rivals. The hybrid took a commanding victory in that fight. However, Autocar now has a new battle for the two coupes. The siblings are together again on the Castle Combe Circuit to find out which of them offers the more enjoyable experience at the track. Unfortunately, we don't ever get a perfect point of comparison in the video because host Steve Sutcliffe never does a full lap in anger with either of them to set a time. Instead, he focuses more on how the BMWs feel behind the wheel. Sutcliffe also admits midway through the clip that the i8's electric motor is out of juice to power the front axle's electric motor. That only leaves the hybrid with its 228-horsepower and 236-pound-feet-of-torque turbocharged three-cylinder to spin the rear wheels. Still, Sutcliffe spends ample time explaining the benefits and downfalls of driving these coupes. See where his opinion falls between the M4 as the traditional German sports coupe and the i8 as the new-school hybrid in the video, above.