1968 Mercedes-benz 280 Sl on 2040-cars

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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.

Daimler buying 12% stake in Beijing Auto

Daimler and Beijing Automotive are officially going steady, with the German company set to take a 12-percent stake in the Chinese brand tomorrow. The two are already tied up in a Mercedes engine plant in Beijing, of which BAIC will increase its stake in, from 50 to 51 percent. Daimler will also get two seats on the Chinese company's board. BAIC may also gain the ability to produce cars on Mercedes-Benz platforms, according to Automotive News Europe.
The investment in BAIC comes ahead of that company's initial public offering, according to a report form Bloomberg, which indicates the deal will be inked tomorrow in the Chinese capital. According to the report, if the circumstances are right, BAIC may turn around and invest in the Germany company "soon."
It's not entirely clear just how much the 12-percent cut is costing Daimler, although it seems reasonable to assume that, as it's ahead of the IPO, the parent company of Mercedes is getting a bit of a bargain.

2015 Mercedes-AMG G65 Review

A German friend who lives in Munich told me she might have to retrieve her car from Innsbruck, Austria while I was in Germany to visit her. I said I'd be happy to chauffeur her to the Tyrol in a Mercedes-AMG G65. She responded to the offer with this question: "You mean – in the G65 Rap Train?" I had no idea what it meant, but the name stuck. Her reasoning was that I would be taken for an American rapper, because what other black American would be cruising south, East, and west Germany for ten days in a 272,000-euro, 5,676-pound chunk of... well, let's just say it: bling. Mercedes created the G65 by installing its 604 horsepower, 6.0-liter, twin-turbo V12 in the G-Class engine bay, and laying oodles of quilted leather inside the cabin. Introduced to markets outside the US in 2012, it sat above the twin-turbo, V8-powered G63 that remained the top-of-the-line here. After years of denial, US buyers will finally get their chance to buy the G65 in November for $217,900. It's a 272,000-euro, 5,676-pound chunk of... well, let's just say it: bling. A grandiose, body-on-frame SUV with a price as momentous as its horsepower might appear silly, but Mercedes can point to plenty of good reasons to bring it here now. In the abstract there's customer demand, AMG boss Tobias Moers having said, "There are AMG fans for whom our V12 biturbo engine is the measure of all things." Concrete justification is in the sales numbers: in May 2010 the G-Class sold 99 units in the US on its way to 919 units for the year. In May 2015 US buyers took home 302 G-Classes, and only five months into this year the brand has sold 1,448 of its ultimate off-roader. The G63 outsold the less expensive G550 in the US in both 2013 and 2014. In 2013 the G63 was the best-selling AMG product in the US, and the G lineup posted its best-ever sales year globally during what was its 35th year on the market. Competitive reasons are likewise substantial. The Bentley Bentayga, Range Rover Sport SVR, Lamborghini Urus, and a Rolls-Royce "that can cross any terrain" will soon join the retail celebration of six-figure SUVs. By getting the G65 here first, Mercedes gets the head start. The burble dripping from the quad pipes is quieter on G65 than the G63. In spite of its price, the Rap Train isn't ostentatious – the sample I was given to drive wearing a beautiful coat of muted satin gray. Because Mercedes is going for a more elegant look for the top of the line G-Wagen, the US-market G65 comes without bull bars.