1989 Jaguar Xjs Base Convertible 2-door 5.3l 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.

Jaguar Classic's 3.8-liter engine block costs nearly as much as a new Jetta

Jaguar is helping collectors restore its vintage models by resuming production of the 3.8-liter six-cylinder engine block it built between 1958 and 1968. Called XK, the straight-six originally powered half a dozen models (including the famous E-Type), and its modern recreation costs nearly as much as a new compact sedan. Wearing part number C22250, the cast-iron block is built to the original's specifications by Jaguar's Classic division, and it comes with a 12-month warranty. Sourcing a used block would likely be markedly cheaper than ordering a new one from the factory, but enthusiasts who value originality above all will appreciate the fact that it comes certificate of authenticity. Customers who send the company proof of vehicle ownership can even retain the serial number from the engine they're pulling out, though an asterisk will identify it as a replacement. Jaguar built the XK engine for several decades, but the 3.8-liter variant only remained in production for 10 years. It powered cars like the surprisingly quick XK 150 roadster, the stately Mark IX and early examples of the E-Type, though its displacement grew to 4.2 liters in 1964. As of this writing, only the 3.8-liter XK is available new. If the E-Type you're painstakingly restoring deserves nothing less than the best, or if you think a 3.8-liter block makes an awesome coffee table, you'll need to send Jaguar a check for GBP14,340 including taxes, a sum that represents approximately $17,800 at the current conversion rate. Enthusiasts will also need to source pistons, connecting rods, a crankshaft and a complete cylinder head, among many other parts, so the cost of a full rebuild will lie well beyond the $20,000 threshold. For context, Volkswagen charges $18,895 for an entry-level Jetta. Related Video:

Road & Track names its 2013 Performance Car of the Year

Road & Track recently staged its first annual Performance Car of the Year test, pitting 13 new and updated performance cars against each other on track, then graduating the top six to a road test before picking a winner. Additionally, the magazine staff picked the best automobiles of the year in eight categories.
But first, let's cover the PCotY segment. Here's the list of cars brought to the comparison test: Audi R8 V10 Plus; BMW 435i; BMW M6 Competition Package; Chevrolet Corvette Stingray Z51; Ferrari F12 Berlinetta; Ford Fiesta ST; Jaguar F-Type V8 S; Jaguar XFR-S; Mercedes-Benz E63 AMG S-Model Wagon; Mercedes-Benz SLS AMG Black Series; Mini John Cooper Works GP; Nissan GT-R Track Edition; and Porsche Cayman S.
To find out the results of the comparison, head over to Road & Track's website or check the press release below, where you'll also find the magazine's top-rated vehicles in eight categories. Want more? Head over to the 2013 PCotY hub. But before you do that, take a stab at guessing the winner of PCotY (we'll give you one hint: it isn't a Porsche).