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BMW M135i vs. Mercedes A45 AMG in Euro small-lux throwdown

BMW and Mercedes-Benz - please, please, please bring the M135i and A45 AMG hatchbacks to North America. For as long as we can remember, buyers in the New World have been forced to look longingly at Europe and Great Britain and the excellent super hatches that are so routinely offered there. And while we're quite content with the Ford Focus ST and Volkswagen GTI, having a 360-horse five-door with a premium, content-rich interior sounds quite nice.
Our envy for Europe has grown after watching the latest video from Drive, which stars Chris Harris, the Mercedes-Benz A45 AMG and the BMW M135i. This latest battle between MB and BMW takes place on both road and track, with Harris providing a running commentary. If you're interested in the upcoming Mercedes CLA45 AMG, you should pay special attention to the section on the A45, as the two are essentially fraternal twins. While the video is a bit on the long side, it provides a comprehensive rundown of both cars, giving those of us in North America just a small taste of what we're missing. Check it out by scrolling below.

2016 BMW 7 Series First Drive [w/video]

Flagships demonstrate strength. "This is what we can do," these cars say with emphasis. Since 1977, the 7 Series has been a rolling showcase of BMW's capability. Sure, BMW makes racecars, but the mighty 7 is a proud reminder that the Roundel also stands for luxury. Except the 7 Series has been eclipsed by the Mercedes-Benz S-Class, a technological tour de force that Mercedes haughtily calls the industry's flagship. BMW makes a pretty nice car, but no one would dare call it that. Bimmer should probably just lower the flag, right? Not yet. Most of history's famous flagships have been fighting machines. They exude confidence, but also pack a punch. And with the 2016 7 Series, BMW is unleashing a broadside on Mercedes and the rest of the industry. Rather than raw power, the sixth generation of the iconic 7 Series is loaded with sophisticated technology that makes the new sedan more luxurious and comfortable. While it looks familiar from the outside, most of the improvements are in the cabin or under the skin. Things like the carbon fiber used for the passenger cell that help the 7 Series shed 190 pounds compared to its predecessor. Or the touchless gesture control that allows you to accept or decline phone calls with simple hand motions. Even the infotainment system is better, with a pinch-to-zoom feature that makes iDrive less confusing and more like the user-friendly iPad. BMW is unleashing a broadside on Mercedes and the rest of the industry. It's a lot of high tech stuff, but the driving experience is still the top priority for BMW. To test its mettle, we traveled to the Monticello Motor Club in rural New York. After several hot laps on the road course (more on that later) we slip behind the wheel of an Arctic Gray Metallic 750i xDrive for some public road driving. The big sedan immediately masks its size on the twisting rural state routes. With 445 twin-turbo V8 horsepower urging us forward, we barrel ahead as the countryside blurs by. Once we settle into a relaxed, legal pace and get our bearings inside the car, we check out some of the new tech. The gesture control is easy to activate while driving, and with a twirl of a finger we turn up the silky-sounding Bowers & Wilkins system. Gestures actually work as advertised. No one calls us, but during an earlier demonstration we were able to decline a call with a dismissive backhand. It felt good.

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.