2015 Bmw X5 Xdrive35i on 2040-cars

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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.

BMW i3 range-extender lawsuit supports Tesla's store argument

Tesla's argument that it needs to own its stores in order to sell its electric vehicles and give customers better information is about to get bolstered by an unlikely source: BMW. The German automaker is the subject of a class-action lawsuit stemming from the performance of the range-extended version of its i3 plug-in. And at least one green-car advocate and i3 owner says the problem could have been avoided by better education at BMW dealerships. The lawsuit was filed in California by some owners of the BMW i3 REx, i.e. the version that's equipped with a gas-powered "range extender," according to Green Car Reports. The issue is that, when the car's battery starts running low and the powertrain is subjected to extended stress, such as a long uphill highway stretch or a fully loaded vehicle, the car can slow from highway speeds to as slow as 45 miles per hour without warning. The claim states that the vehicle can post a danger as a result, while BMW has declined comment, citing pending litigation. Meanwhile, Tom Moloughney, owner of the first BMW i3 REx to be sold in the US, says the problem might rest at the dealership level. Moloughney says that if dealers explained the car's mechanics better – especially the fact that the range extender is essentially a 34-horsepower, two-cylinder motorcycle engine whose power is limited – drivers would be better informed about what could happen when the battery power is sapped at highway speeds. While Tesla EVs don't have the same sort of REx powertrain, this argument nicely dovetails with what Tesla Motors has been saying for a long time, that its cars should only be sold at company-owned stores because third-party dealers are less likely to understand and explain the nuances of electric vehicles. No word on whether Elon Musk's lobbyists are getting together with lawyers representing the Ultimate Driving Machine. Related Video: Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: Green Car Reports via Automotive News-sub.req. Government/Legal Green BMW Electric Hybrid lawsuit range extender tom moloughney

2014 BMW X5

Is Better Than Ever Still Good Enough?
By now, all but the staunchest of traditionalists have moved past the shock and horror of seeing their favorite automotive brands branching into categories and segments that break with their previously accepted norms. In other words, you and I don't really care all that much if the BMW M3 is powered by an inline six or a V8, or whether it boasts a turbocharger, just so long as the end result is an awesome car. Similarly, we don't get all hot under the collar seeing that same M3 share space on the showroom floor with a brace of SUVs and crossovers... or, as BMW continues to insist, Sports Activity Vehicles.
Time, as they say, heals all wounds, and the BMW X5 has been around long enough, having first seen the light of day in 1999, that anyone offended by its existence has since gotten over it. Plus, the X5 is a legitimately nice vehicle to drive, offering such desirable qualities to family men and women as seating for up to seven, all-wheel drive and a commandingly tall view of the road. For the enthusiast set, the X5 serves up a taut chassis and powerful engine options.