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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.

Lotus CEO Jean-Marc Gales abruptly quits

Jean-Marc Gales is out as CEO at sports car maker Lotus after nearly four years and a track record of turning the company from years of financial losses to a small profit. He'll be replaced by Feng Qingfeng, vice president and chief technical officer of China's Geely Auto Group, who joined the company's board after Geely acquired a majority ownership stake a year ago. Gales will continue as chief strategic advisor to Lotus Chairman Daniel Donghui Li. "Jean-Marc has stabilized and turned Lotus to profitability for the first time in the iconic brand's history, with new industry-leading products and unique business models since joining the company in 2014," Daniel, who is also Lotus' chief financial officer, said in a statement. "Lotus is poised for the next phase of growth under Feng Qingfeng's leadership, where its expertise in lightweight materials and sports car engineering will form part of the wider expansion of Geely's automotive portfolio." Gales told Autocar he was leaving for "personal reasons" and said it was "time to move on." He will head up JD Classics, a British dealer and restorer of classic cars. Gales praised his successor, saying Feng could "unlock the synergies" between Geely stablemates Lotus, Volvo, Polestar and Chinese brand Lynk & Co. Lotus under Gales had been working on updating its aging portfolio of cars — the Elise, the Exige and the Evora — with plans to first update the Elise by 2020. Earlier this year came word that Gales had green-lighted two new sports cars, to be announced later this year and produced in 2020, and an SUV about the size of the Porsche Macan and possibly based on Volvo's SPA platform, which underpins the XC60 and XC90. Lotus under Gales saw sales increase 10 percent in 2017 to about 1,600 sports cars. Related Video:

This might be a Lotus SUV test mule

These photos could be our first look at the Lotus SUV in test mule form. The body on the chassis is clearly that of a Lynk and Co. 01 SUV, but the underpinnings are something different entirely. Perhaps the most telling bit of all is the location in which our spy shooter caught the vehicle. We're told that this was shot dangerously close to Lotus' headquarters in Hethel, England. Using a Lynk and Co. body to test the Lotus SUV makes sense when you take into account who owns both companies. Geely happens to own Lotus, Lynk and Co. and Volvo, so they're all under the same roof at this point. These spy photos appear to be hiding a chassis that doesn't exactly fit correctly under the body, though. The front fenders are far wider than they are on the 01, and the rear fenders also look like they've been messed with to fit the much larger rubber. It has a wider, more aggressive stance than the Lynk and Co. SUV, lending more evidence to this being a Lotus SUV test mule. We'd expect a Lotus SUV to handle as well as anything in the class, so all these things do make sense if that's what it is. As for what could be powering the British SUV, that's another story. This tester has yellow caution tape covering where the gas cap is on the 01 SUV, no visible exhaust and a big, yellow high voltage sticker on the windshield. All of that tells us it's most likely electrified in some form. We didn't have intel that the Lotus SUV would be electric previously, but there's every chance they could go down that road. The Lotus 130 hypercar is going to be all-electric. And Volvo sells plug-in hybrids now, so the tech could be borrowed from there, too. Of course, Volvo doesn't have the same priorities as Lotus does with weight reduction and handling, so don't consider anything a done deal quite yet. We can't actually confirm that the vehicle in question is a Lotus underneath, but hopefully more photos and information make their way to us soon. There's still a long way to go in the development process if Lotus is only testing on mules now, so look for plenty more to come on this vehicle.