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Vettel hopes to pull off some Ferrari 'tricks' to end Mercedes F1 dominance

MONTREAL — Sebastian Vettel says Ferrari has a few tricks up its sleeves for this weekend's Canadian Grand Prix and will need to conjure up something special if it is to end Mercedes' magical run. Six races into the season, Vettel is not ready to wave the white flag and concede the title to Mercedes, which has racked up six straight wins, five of them with 1-2 finishes. But the German admits the battle had reached a critical juncture. "The next races will be really crucial for us to try and get back to the front and give a much harder time to Mercedes," said Vettel, who finished second in Monaco last month for Ferrari's best result so far this season. "It will be crucial to do it rather sooner than later, but at the moment I am not too fussed, I am not looking at, 'OK this is the date.' "Clearly we are behind, clearly there is a big margin between Mercedes and the rest and we have to lose that gap and get ahead otherwise it will be difficult to turn around. "That is as much realism as you can get."Vettel won from pole position in Canada last year and Mercedes has suggested the high-speed circuit could again favor Italian rivals whose season has yet to get into gear. But Mercedes drivers Lewis Hamilton and Valtteri Bottas will like their chances as well on the Circuit Gilles Villeneuve. Hamilton was fastest in Friday's early practice, but damaged his car when he hit the wall in the afternoon. The five-time world champion sits 17 points clear of Bottas at the top of the standings and in his bid to equal Michael Schumacher's seven Canadian Grand Prix victories between 1994 and 2004. Not that Mercedes needed another boost, but Hamilton and Bottas will have new and upgraded engines in their cars for this weekend's race. Ferrari has already introduced its first upgraded powerplants of the season, but Vettel was optimistic tweaks to the car would benefit them on a circuit that plays to some of their strengths. "There is always little tricks you can do, the question is whether they make a difference," Vettel said. "But I am not sitting here trying to paint things black we haven't done a single lap this weekend so I am quite optimistic it was a strong track for us last year. "We have some tricks up our sleeves whether they work or not we will see.

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.

European automakers gear up for Brazilian production

Brazil is the place to be, apparently. Toyota has been investing in the South American country, as has BMW, which announced a $261 million investment in October 2012, on the heels of an Audi factory announcement in San José Chiapa. The high-end immigration is only set to continue, as Mercedes-Benz and Jaguar-Land Rover have both announced plans to set up manufacturing operations there.
Mercedes is the big news here, as its new facility will see the German manufacturer invest 170-million euros for production of its next-generation C-Class and upcoming GLA-Class. "Brazil is an important future market. With our local production we accept the challenge and take on the competition," noted Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans. Production is expected to begin by 2016.
Jaguar-Land Rover, meanwhile, isn't so concrete in its plans. The news of its investment in South America comes from a job posting for a plant quality manager in Brazil that was picked up by the UK's AutoCar. "Portuguese language skills will be definite advantage" for interested candidates, according to the job listing. The want ad follows on the heels of remarks by Jaguar Land Rover's Dr. Ralph Speth, who said there are "very intensive discussions" with Brazil's government. Unlike Mercedes, there's no mention of which vehicles will be produced in South America, although AutoCar thinks the Freelander, sold in the US as the LR2, is a leading contender.