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British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.

Honda Accord sets the pace as Indy safety car with HPD upgrades

Honda has rolled out a new pace car to lead the pack in the IndyCar Series. But it didn't just slap some graphics and auxiliary lighting on a production model and call it a day. Honda Performance Development (HPD) was tasked with giving the Accord coupe a thorough overhaul to prepare it for the task at hand. To the 3.5-liter V6, HPD bolted a Borg-Warner turbocharger and fitted high-flow fuel injectors and custom intake, exhaust, pistons, connecting rods and intercooler as well as the crankshaft from the Acura RLX to drive output up to 400 horsepower. The transmission was beefed up as well, with a limited slip differential to help get the power down to the track surface. To keep it all in check, HPD fitted new brakes, a stiffened suspension and rolling stock. It's all been topped off with a factory aero kit, special graphics and lighting, with Sparco seats and four-point racing harnesses fitted inside. The latest in a series supplied by Honda since 2006, the Accord safety car made its debut this weekend at the Honda Indy Grand Prix of Alabama at Barber Motorsports Park. Honda Unveils 2015 Accord Safety Car Apr 24, 2015 - TORRANCE, Calif. - Will pace IndyCar Series races starting Sunday at Barber Motorsports Park - Latest in series of Honda safety cars for Indy car competition - Production 2015 Honda Accord modified by Honda R&D Americas Honda today unveiled the 2015 Honda Accord Safety Car, which will lead the Verizon IndyCar Series field to the green flag for Sunday's Honda Indy Grand Prix of Alabama at Barber Motorsports Park. The latest in a series of Honda Safety Cars utilized since 2006 for Indy car competition, the 2015 Honda Accord Safety Car is a production model featuring performance enhancements created by Honda R&D Americas, Inc., for its new role. "The 2015 Honda Accord Coupe is an ideal match for IndyCar Safety Car duties," said Jim Lee, manager of Experiential Marketing for American Honda. "Taking its already large and powerful 3.5-liter V6 engine, we asked the team at Honda R&D Americas to enhance and develop a car that is perfectly suited to lead the Verizon IndyCar Series field. I think they accomplished all that we asked, and more." The Honda R&D team started with a production Honda Accord Coupe, then added a mix of engine and chassis modifications to create a fun, fast vehicle fully capable of pacing Indy cars at both road courses and oval tracks across North America.

Asian automakers still reluctant to use more aluminum

There's a logical progression of technology in the auto industry. We've seen it with things like carbon-ceramic brakes, which use to be the sole domain of six-figure sports cars, where they often cost as much as an entry level Toyota Corolla. Now, you can get them on a BMW M3 (they're still pricey, at $8,150). Who knows, maybe in the next four a five years, they'll be available on something like a muscle car or hot hatchback. Aluminum has had a similar progression, although it's further along, moving from the realm of Audi and Jaguar luxury sedans to Ford's most important product, the F-150. With the stuff set to arrive in such a big way on the market, we should logically expect an all-aluminum Toyota Camry or Honda Accord soon, right? Um, wrong. Reuters has a great report on what's keeping Asian manufacturers away from aluminum, and it demonstrates yet another stark philosophical difference between automakers in the east and those in the west. Of course, there's a pricing argument at play. But it's more than just the cost of aluminum sheet (shown above) versus steel. Manufacturing an aluminum car requires extensive retooling of existing factories, not to mention new relationships with suppliers and other logistical and financial nightmares. Factor that in with what Reuters calls Asian automaker's preference towards "evolutionary upgrades," and the case for an all-aluminum Accord is a difficult one. Instead, manufacturers in the east are focusing on developing even stronger steel as a means of trimming fat, although analysts question how long that practice can continue. Jeff Wang, the automotive sales director for aluminum supplier Novelis, predicts that we'll see a bump in aluminum usage from Japanese and Korean brands in the next two to three years, and that it will be driven by an influx of aluminum-based vehicles from western automakers into China. Only time will tell if he's proven right. News Source: ReutersImage Credit: Sean Gallup / Getty Images Plants/Manufacturing Honda Hyundai Mazda Nissan Toyota Technology aluminum