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The next-generation BMW M5 starts here

The next-generation BMW 5 Series hasn't even arrived yet, but BMW is hard at work testing the hottest version of the popular sedan – the sixth-generation M5. Now admittedly, these photos might not look much like an M5. The wheels are big, but not uncommonly so. There's no wild and crazy body kit, or hugely flared wheel arches. But what's that in the back? Are those four exhaust tips? Why yes, yes they are. And take a second look at those wheels. Notice the pizza-pan-sized brakes and huge calipers? Yet another M5 giveaway. But as our spies rightly point out, even though this does represent development work on the next M5, it's a very early prototype. That could also explain the charge port on the driver's side front fender, a feature that we've seen on other 5 Series prototypes. This does not mean the next M5 will be a plug-in hybrid, however. What the next M5 will likely be, though, is all-wheel drive. This isn't a huge surprise, considering that the Mercedes-Benz E63 AMG has already gone AWD, while the Porsche Panamera Turbo and Audi RS6/7 have always had four driven wheels. BMW has even hinted at just such a development, with former M boss Dr. Friedrich Nitschke going as far as saying AWD could arrive on the next M5. "On our cars we are thinking of all-wheel drive, but it won't come before we get the successor of the M5 and M6," Nitschke said in an October 2013 report. "That's the timing and it's not practical to react in the current life cycles." At this point, it's simply too early to guess at when or where the next-generation M5 will debut. We're expecting the next-gen 5 Series at either the 2016 Geneva Motor Show or Auto China 2016 in Beijing. The next M5 could join it, although it's possible it'd get its very own debut at a later date.

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.

Wagons make a bit of a comeback, with new models, sales on the rise

Consider this an official invitation to hop on the wagon bandwagon. There's still tons of room because, well, it's a wagon (and market share is still extremely small). But according to new data, the segment is growing. According to a report from Bloomberg, using data from Edmunds.com, roughly 211,600 Americans purchased wagons in 2018. That is technically down from the 237,600 sold in 2017, but wagon sales in the U.S. are up 29 percent from where they were five years ago. It's also the third year in a row that wagon sales broke the 200,000 mark. The sales trends have been somewhat representative of the availability of wagons. New models have debuted during the past 5 years and therefore offer more opportunity at more brands to buy wagons. In addition to more modest cars such as the Volkswagen Golf Sportwagen, several luxury and performance brands are offering wagons today, such as Mercedes-Benz, Audi, Porsche, Jaguar, Volvo and Buick. (Bloomberg's headlines make the point that "crossovers are for the Kardashians," and wagons are just, well, classier.) This uptick in brand-name availability, as well as extremely well-executed design on most of the wagons currently available, has helped increase the segment's desirability. That, and its ability to better accomplish the same tasks at hand while standing out from the crossover and SUV crowd. Still, the posted numbers represent a small fraction of the total vehicles sold. According to the data, wagons only held a 1.4 percent market share in 2017, the segment's best recent year. Wagons hold a steadfast place in America's past, and they're writing an interesting new story. With the downturn in traditional cars, they may continue to create an unexpected narrative. Related Video: News Source: Bloomberg, Edmunds Audi BMW Buick Volkswagen Volvo Wagon station wagon