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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 Land Rover output at two UK plants hit by chip shortage

LONDON — Output at two of Jaguar Land Rover's (JLR) British car factories will be temporarily halted from Monday, due to COVID-19 supply chain disruption, including a lack of semi-conductors, the firm said on Thursday. "We have adjusted production schedules for certain vehicles which means that our Castle Bromwich and Halewood manufacturing plants will be operating a limited period of non-production from Monday 26th April," the Tata Motors-owned company said. The COVID-19 pandemic has driven up demand for semiconductor chips for use in electronics like computers, as people worked from home, and suppliers are struggling to adjust, hitting output at many automakers. Trade flows have also been affected. On Wednesday, carmaker Stellantis said it would replace digital speedometers with more old-fashioned analogue ones in one of its Peugeot models, as the fallout continues. Renault's finance chief said on Thursday that car production fell by tens of thousands of vehicles in the first quarter as a result of the shortage. Output at JLR's third British car factory in Solihull, central England, will continue, the company said. "We are working closely with affected suppliers to resolve the issues and minimize the impact on customer orders wherever possible."  

Jaguar takes evolutionary approach for 2016 XF [w/videos]

One week ahead of its debut at the 2015 New York Auto Show, Jaguar has let loose a slew of images and details on the second-generation 2016 XF Sedan. The release comes alongside a high-profile stunt over London's Canary Wharf. A total of 75 percent of the XF's body is made from aluminum, which trims the big cat's curb weight by 132 pounds on the rear-drive model and 265 pounds on the all-wheel-drive variant. Aside from aiding acceleration, braking and fuel economy, the advanced structure promises an increase in torsional stiffness as well as a 50-50 weight distribution. Beyond that, the new car's dimensions differ only slightly compared to last year's XF. The wheelbase has been stretched by two inches, although the new model is 0.3-inches shorter and 0.1 inches lower. Double wishbones are used in front while an integral-link suspension sits in back with standard traditional dampers and optional adaptive dampers. Jaguar is also promising the Configurable Dynamics system that was pioneered on the F-Type. No surprise here, but an electric power-assisted tiller will be in use, although Jag says it benefits from lessons learned with the XE. Jaguar is mum on its full powertrain lineup, although it does mention that both 340-horsepower and 380-hp versions of Jaguar Land Rover's familiar 3.0-liter, supercharged V6 will be offered, paired with standard eight-speed automatic transmissions (likely the highly regarded ZF autobox). Jaguar's designers, led by design director Ian Callum, didn't rock the boat too much for the new sedan. Clearly inspired by the upcoming XE, the new XF gets a wider, but thinner grille. The headlights are slimmer, but retain a similar shape compared to last year's car, and as is the trend, they're now lined with LED accenting. The S trim, shown above, gets wide, menacing grilles in the front bumper as well as a total lack of chrome trim. The XE influence is most evident on the XF's tail, where the Aston Martin-aping taillights of the first-gen have been ditched, with broader, angled units, complete with an F-Type-inspired LED pattern. As with the current car, a thin chrome strip ties the lights together, while the lower bumper on this sportier model features a gloss black surround for the dual exhausts. Not surprisingly, the XF's profile is pretty classic, with a very long hood and a short deck that terminates in a handsome duckbill spoiler.