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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.

Toyota takes aim at Musk's criticism of hydrogen 'fool cells'

Tesla's Elon Musk has called hydrogen fuel cell cars "a load of rubbish" and "fool cells," and he's nowhere near alone in his disdain for the technology. Toyota has been fighting back waves of condescension for years now, and did so again when Senior VP Bob Carter took the stage at the recent J.D. Power Automotive Summit this month. His target was comments that Musk made at the Automotive News World Congress at the Detroit Auto Show, when Musk said an FCEV was an "extremely silly way" to store energy, that "the best-case hydrogen fuel cell doesn't win against the current-case battery" and that hydrogen's failings will become obvious in the next few years. Carter's response was that the fuel cell initiative isn't about the next few years. "This is not a 24-to-36-month play, but when you start looking into the 2020s," then you can see the necessity of hydrogen fuel cells, which Toyota considers an extension of EV technology, he said. The Toyota Mirai will begin its defense of the FCEV industry in the US later this year. The Hyundai Tucson Fuel Cell is already available in California and Honda's hydrogen car will arrive in 2016. Until then, we can let some more of Carter's words ring in our ears: "If I was in a position where I had all my eggs in one basket," he said of Musk's BEV-only focus, "I would perhaps be making those same comments." News Source: Automotive News - sub. req. Green Tesla Toyota Electric Future Vehicles Hydrogen Cars toyota mirai fcev bob carter

Toyota and Mazda set to expand partnership

Toyota and Mazda are already teaming up for the Scion iA and Mazda2, but that partnership might just be the beginning. Reuters reports the two Japanese companies could expand their work together, with Toyota chipping in its experience with both fuel cells and plug-in-hybrid tech, and Mazda contributing its know-how in regards to its Skyactiv line of engines. The report cites a pair of unnamed sources that are "not authorized to discuss the matter publicly." The move, on the surface, is certainly appealing for both parties. Mazda has very little experience with hybrids (remember the Ford-rebadged Tribute Hybrid?), let alone something as advanced as a fuel-cell vehicle. Teaming with Toyota, arguably the world's greatest hybrid manufacturer, would give it a serious leg up. For the Japanese giant, meanwhile, a partnership with Mazda could expand the economy of scale for the Mirai FCV's tech, while Skyactiv engines would do well in replacing the base engines in cars like the Corolla, Camry, and RAV4. What are your thoughts? Would an expanded partnership between Toyota and Mazda make sense? Can you think of any drawbacks? Have your say in Comments. Featured Gallery 2016 Toyota Mirai View 15 Photos News Source: Reuters Green Mazda Toyota Electric Hybrid skyactiv toyota mirai