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Auto blog
The UK votes for Brexit and it will impact automakers
Fri, Jun 24 2016It'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.
Recharge Wrap-up: Toyota Prius airbag recall, Peugeot launches eU01s e-bike
Fri, Sep 16 2016Toyota is recalling 7,600 Prius vehicles for an airbag issue. Certain examples of the 2016 Prius could have malfunctioning inflators that could cause the passenger side airbags to deploy accidentally. There are no known injuries from the faulty airbags, but Toyota says, "This has been observed when the vehicle is parked and unoccupied for a period of time." Toyota also says this issue is unrelated to the massive recall of airbags supplied by Takata. The automaker will contact affected owners to arrange free repairs. Read more at Automotive News. Peugeot is adding another e-bike to its portfolio with the eU01s. What sets this electrically assisted bicycle apart from both regular bikes and other pedelecs is its ability to propel the bike to 28 mph under electric power. It comes with either a 400- or 500-Wh lithium-ion battery, providing 47 or 59 miles of range, respectively. It also offers an optional on-board computer with its 4.3-inch screen, through which riders can customize the electric assistance, get directions, receive sports coaching, and connect their smartphone. Earlier this year, Peugeot also launched its e-Kick scooter and folding eF01 e-bike. Read more at Green Car Congress. BYD is expanding its manufacturing facility in the US. In the second of three phases for the plant, BYD is adding onto its factory in Lancaster, California, where it currently builds electric buses. The Chinese company plans to triple the number of employees, up from the current 400, as it expands the facility by 40,000 square feet. BYD plans to build medium- and heavy-duty trucks at the plant, but declined to comment on whether it has plans to build light-duty vehicles there. Read more at Automotive News. The German states of Hesse and Baden-Wuerttemberg are suing Volkswagen over the Dieselgate scandal. The states are joining other investors seeking damages over losses incurred because of the automaker's emissions cheat device. Hesse Finance Minister Thomas Schaefer said the scandal cost the state about $4.4 million in stock losses, while Baden-Wuerttemberg likely lost closer to $450,000. Bavaria said earlier that it would sue Volkswagen on behalf of its pension fund for civil servants, which lost around $780,000. Read more from Automotive News Europe.
VW recalls 25k Jettas over low-beam headlight issue
Wed, Dec 31 2014Volkswagen has discovered an issue with the headlamps on its latest Jetta and is issuing a recall notice in conjunction with the National Highway Traffic Safety Administration to correct the issue. The problem revolves around the headlight control module, which has been found in certain instances to switch off the low-beam headlights when the high beams are turned on. Needless to say, that could result in insufficient illumination in the dark, so VW is moving to update the module's software. The issue only affects the new 2015 Jetta – specifically those manufactured between July 11, 2014 (which just happens to be this writer's birthday, thank you very much) and November 13, 2014. All in all, the Volkswagen Group of America estimates that encompasses 25,007 units in the United States, the owners of which can expect to hear from their dealers in the new year. RECALL Subject : Insufficient Headlight Output Report Receipt Date: DEC 15, 2014 NHTSA Campaign Number: 14V790000 Component(s): EXTERIOR LIGHTING Potential Number of Units Affected: 25,007 All Products Associated with this Recall close VOLKSWAGEN JETTA 2015 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Jetta vehicles manufactured July 11, 2014, to November 13, 2014. Due to incorrect software within the headlight control module, the low beam headlights may turn off when high beam lights are turned on. As a result, the light output from the headlights may be insufficient. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108. "Lamps, Reflective Devices, and Associated Equipment." CONSEQUENCE: Insufficient headlight output may increase the risk of a crash. REMEDY: Volkswagen will notify owners, and dealers will update the headlight control module software, free of charge. The recall is expected to begin in January 2015. Owners may contact Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 57F6. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.