2020 Mini Cooper S 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.

Mini battling sales slump again, is it becoming cliche?

Things aren't looking good for Mini this year. The diminutive BMW brand has shown falling sales every month in 2014 in our By the Numbers wrap-ups. If that weren't bad enough, the latest Cooper Hardtop suffered fuel economy issues upon arriving to the US. First, there was a delay getting some versions certified, and then several models had to have their miles-per-gallon ratings revised.
According to Automotive News, the brand's sales are down about 20 percent for the year through October, despite hitting a record 66,502 vehicles in the US for 2013. For their part, Mini execs attribute much of that drop due to constricted supply. However, with the new-generation three-door Cooper finally on sale and the five-door coming at the end of the year, there might be room to bounce back some in the final months of 2014. "We are starting to claw back our way a little bit. It will be an uphill battle," said David Duncan, vice president of Mini of the Americas, to Automotive News. "We will not get back to where we would be even year over year. It should be a lower decrease than it is so far."
AutoTrader Senior Analyst Michelle Krebs reminds Autoblog that external factors aren't helping the brand's sales either. For one, there's "a direct correlation exists between falling gas prices and lower small car sales," she said, and the average price per gallon is now $2.94, according to the US Energy Information Administration. Also, the booming popularity of small crossovers is eating into the compact car market. Mini has its Countryman model, but the trend could be hurting the rest of its lineup. "Mini was fresh, new, unique and stylish, but fashions change and fashion-conscious buyers are fickle. They move on to the next thing," Krebs said.

BMW restores classic Mini as it revives production in Netherlands

Mini will be kicking off production in the Netherlands, a country that hasn't built a Mini-badged machine since 1966. In honor of this event, BMW Group Classic, the team responsible for all the cars in the BMW Museum, as well as being a spare parts and restoration company in its own right, revived a classic 1959 Austin Seven. That particular car, number 983, was one of the first Minis to be built in the Netherlands.
The Netherlands' JJ Molenaar's Car Companies built 4,000 Austin Sevens and Morris Mini-Minors between 1959 and 1966, although we imagine Dutch Mini production will be much bigger when it starts up again in summer 2014. A five-person team from VDL Nedcar, the group handling production of new Minis, took to the job of restoring the diminutive British car from nose to tail.
The 34-horsepower engine and the transmission were both completely rebuilt, while the door panels were redone by hand. Help from the Mini community aided the VDL Nedcar team in finding authentic replicas or original parts where possible. All told, the new classic Mini is a striking example of what a good restoration can do to a car. The Seven was repainted in its original Farina Gray, adding to the car's sense of authenticity.