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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.

Hyundai plots a Nissan Juke fighter

A few years ago, Hyundai Motor America CEO Dave Zuchowski suggested interest in taking on the Nissan Juke with a subcompact crossover. It looks like that project is coming together, as we caught Hyundai testing a small, curiously-styled SUV in Germany recently. The SUV is expected to share a lot of the same chassis components as the i20, a hatchback that's sold in other parts of the world, with the same engine lineup as the new i30, another hatchback that Hyundai doesn't sell in the America. In the United Kingdom, the i30 is available with engines including a 1.4-liter gasoline and a 1.6-liter diesel unit. Front-wheel drive would be standard with all-wheel drive an option. The heavily-camouflaged prototype doesn't give away a lot of the SUV's design. The front of the vehicle is hidden away, but what we can see the grille features hexagonal shapes instead of the horizontal bars that we've become accustomed to seeing in Hyundais. The headlights mimic the Jeep Cherokee's design with thin slits on top and larger, round units toward the bottom. At the back, camouflage hides the majority of the prototype, but the taillights appear to be different than the rest of Hyundai's offerings. The outline of the taillights resembles the same units found on the Intrado Concept, indicating the vehicle will get some design cues from the hydrogen-powered prototype. A single exhaust outlet protrudes underneath the rear end. The overall profile of the SUV appears to be smaller than the Tucson, which is currently Hyundai's smallest crossover in the US. Related Video: Featured Gallery Hyundai SUV Spy Shots View 10 Photos Image Credit: CarPix Design/Style Spy Photos Hyundai Nissan Crossover SUV Future Vehicles

Infiniti confirms new "premium compact" to be built in UK

Aside from certain naming-related news, Infiniti has actually had some decent product news to announce this week. The company's president, Johan de Nysschen, alluded to a new 550-horsepower performance sedan, and now the automaker has confirmed that a new "premium compact" will go into production in 2015. Based on the fact that this new model will be built alongside the Nissan Leaf at the automaker's Sunderland, UK assembly plant, we could only hope that it's a production version of the LE Concept (shown above).
Sunderland already produces Nissan products like the Qashqai, Juke and Note, and as a part of an investment of 250 million British pounds (around $406 million USD) for the new model, the plant would add an extra 280 jobs with the capacity to build 60,000 of the new Infinitis annually. Adding the premium compact at Sunderland means that Infiniti will have to change its plans for another new model, a bigger "C-segment hatchback," which could very well be a production version of the Etherea Concept.