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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.

How to fix a $4,000 hybrid battery problem with vinegar and baking soda

This is one of those 'Don't try this at home if you don't know what you're doing' DIY tales. Two weeks after imgur user "scoodidabop" bought a used Toyota Camry Hybrid with no warranty, he got the Christmas Tree dash display with warnings like "Check VSC System," "Check Hybrid System," and the Check Engine light. After some Internet sleuthing he figured it could be a faulty brake actuator, assuming the hybrid system warning was a false alarm. But it wasn't the actuator, it was the battery, a Toyota dealer telling him that his battery had "gone bad," and he'd need $4,457 to replace it. Then he had a brainstorm: it could be one of the cells that's gone bad, not the whole battery. Scoodidabop has some experience as an electrician, so he figured he could test it and replace any bad cells for about $45 apiece. He removed the battery unit from the trunk and over the course of two hours tested all 68 cells four times. He found nothing wrong. So he devised another type of test and checked every cell again. He couldn't find a problem with any of them. Turns out the problem wasn't in the cells, but with the dirty and corroded copper connectors at the ends of the high-voltage cables. He pulled the 34 connectors and their steel nuts, soaked them in vinegar, gave them a light steel wool scrub, soaked them in baking soda and water to counteract the vinegar, applied an anticorrosive and reinstalled them. That took an hour. When he replaced the battery, the warning lights had all gone out and the battery worked perfectly. Skill level: experience. Cost: less than $10. Perhaps it's time for hybrids to be able to test their own cells individually. Dealers, too.

10% of Toyota China dealers may drop due to losses

News about the auto industry in China is usually positive thanks to booming sales and an ever-increasing number of factories across the country. But in some cases, it appears that the dealers with the job of actually selling all of those vehicles are having trouble finding buyers. The result is cars piling up on lots and showrooms resisting against automakers. Japanese automakers already face a tough road to success in China, but the FAW-Toyota joint venture is especially struggling this year. According to Bloomberg, as many as 10 percent of the dealers might have to close or stop selling the brand because they just can't make money selling the vehicles on their lots. Also, 95 percent of the showrooms are reportedly losing money. The issue facing FAW-Toyota sellers is mostly a case of supply and demand. Automakers in China mandate the number and types of vehicles that dealers sell. However, the inventory from all makes is at its highest level since August 2013, according to Bloomberg. The situation leaves dealers with packed lots, and cars often require discounts to move. Making matters harder is that showrooms have annual sales targets, which are linked to bonuses. This money can account for over half of the sellers' annual profits, according to Bloomberg. The FAW-Toyota dealers are pushing back by asking Toyota for 2.2 billion yuan ($355 million) to pay for costs associated with the extra inventory. It also lowered sales targets by six percent earlier this year and has requested no increase in the numbers for 2015. News Source: BloombergImage Credit: Nelson Ching / Bloomberg via Getty Images Earnings/Financials Toyota Car Buying Car Dealers