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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.

Car Hacking 101: Here's what motorists should know [w/video]

Cars are nothing more than computers on wheels. As such, they're vulnerable to hackers. Most people who work within the auto industry have understood this for years, but for the broader American public not paying as close attention, three storylines emerged recently that underscored this new vehicular reality. First, German researchers found a flaw in BMWs remote-services system that allowed them to access the telematics units in vehicles. Then, a 60 Minutes report demonstrated that researchers could remotely infiltrate a Chevy Impala and override critical functions, like acceleration and braking. Finally, a US Senator released a critical report (see video above) that found almost all automakers are unprepared to handle real-time hacks of their vehicles. Those reports come on the heels of two previous instances in recent months when researchers demonstrated the capability to hack cars. All this news can be disconcerting. If you're late to the concept of car-hacking and wondering how this is possible, we've got you covered. Here's your quick primer on what you need to know. 1. How Did My Car Become A Computer? On the outside, cars haven't changed all that much over the past couple of decades years. On the inside, however, the amount of electronics and software has dramatically increased. Most new cars contain more than 50 microprocessors known as electronic control units. These ECUs control everything from airbag deployment and navigation systems to throttle control and braking, and they're usually connected to each other on an internal network called the CAN bus. 2. What Exactly Is Car Hacking? Depends who you ask. Automakers might consider anything that alters the car from its state of manufacture as a 'hack.' For example, if you're chipping the engine – re-calibrating those ECUs to increase your horsepower – some people might consider that a hack. But in the context of the recent news reports, security experts are focused on unwanted, unauthorized cyber intrusions into a vehicle. Once inside your car, prospective attacks could range from minor things like eavesdropping on conversations via an infotainment system and unlocking car doors to major concerns, like overriding driver inputs and controlling braking, steering and acceleration. 3. How Is This All Possible? Any part of the car that communicates with the outside world, either via a remote or direct connection, is a potential entry point for hackers.

Confident new Cadillac marketing boss ready to take on Tesla, BMW

When there's a former BMW executive heading Cadillac's efforts to boost sales of its only plug-in, it's a pretty safe guess that the marketing emphasis won't be on environmental friendliness and tree-hugging tendencies. The General Motors luxury brand has appointed ex-Bimmer executive Uwe Ellinghaus to be its marketing chief late last year, and the German-born Ellinghaus is now saying that he's targeting potential customers of Tesla Motors, in addition to BMW, for potential growth in sales of the Cadillac ELR extended-range plug-in. Appointed to Cadillac's head of marketing last November, Ellinghaus recently told Advertising Age that GM needs to highlight the Cadillac's looks and performance. He complimented Tesla for putting more emphasis on those attributes in the Model S than on its lack of emissions or lack of refueling costs (but Tesla hasn't shied away from highlighting the EV's savings). Ellinghaus says that trying to gear advertising "for people who are tree-huggers and green-wash an entire brand" won't be successful. You don't say. So far, the ELR hasn't made much of a dent in US car sales. Through May, Cadillac, which spent about $280 million on all of its US marketing last year, sold 293 units, whereas Tesla had been approaching the 11,000-unit figure for the Model S. With that in mind, Cadillac may be working on a sportier version of the ELR, as spy shots of a test vehicle from May revealed larger brakes and wheels. You can read our First Drive impressions of the ELR here.