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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.

Hybrids to slowly replace diesels at Mercedes

German automakers have had some success bringing diesel-powered vehicles in America in recent years, but that may not last much longer. A product planner from Mercedes-Benz we spoke to in Austria apparently believes hybrid setups may be more favorable in the long run, and electrified hybrids will eventually replace oil burners. That's why most every concept car we've seen in the last few years features some sort of hybrid or plug-in hybrid setup while there have been very few diesels. "Yes, diesel is technically complex, and very expensive. The additives to reduce particulate matter are very costly. You'll see more hybrids to meet the changing regulations," according to our source. We've seen this exact scenario play out with Mazda, which has struggled to bring its 2.2-liter diesel engine to America, citing the costly process to reduce emissions in order to meet California-level standards while still maintaining suitable performance for the US market. It's certainly interesting that this news comes hot on the heels of revelations that VW, the automaker that offers the most diesel-powered models in the US, was found in violation of emissions rules on its popular 2.0-liter TDI engine. New Mercedes GLE Will Have An Active Chassis Mercedes has launched an all-out product offensive in the last two years, but the product planning think tanks in Stuttgart have a few surprises in store, too. While Benz has just launched its new GLE SUV family, GLE product planners are already hard at work on the next-generation – yes, a good 5-6 years away – and tell us it will evolve to boast new chassis technology, "something that doesn't exist today." The next-GLE is codenamed 167 – the previous ML (now replaced by the GLE) was internally referred to as 166 – and the GLE planner we recently talked to calls the platform an "active chassis." He further alluded that the next version could be electrified. Currently, the only aspect of the GLE's chassis that is 'active' today are the hydraulic pumps on the roll bars, he said. Many of Mercedes' models can already be had with an adaptive air suspension, multiple selectable driving modes, and other features that were rare or nonexistent just a couple generations ago. One More Compact Crossover On The Way The planner said we can also at least one more all-new, forthcoming compact crossover to be built on the GLA platform. In addition to the GLA, that architecture is currently shared by the A-Class, B-Class, and CLA-Class models.

Brabus luxes up new Mercedes V-Class

Looking for a luxury coach to get you around town in style and comfort, but don't need anything as big as a Sprinter? Mercedes will gladly point you towards the smaller V-Class, trading Stateside as the Metris. And now Brabus has released a full array of customization options for the van as well. The list of modifications available from the venerable Benz tuner include an aero kit to give the van a sleeker look while reducing front-end lift, a full complement of 18- and 19-inch wheel options, a retuned suspension, engine enhancements, exhaust upgrade, and a fully refitted interior. The first-class cabin on this show vehicle has been reupholstered in leather and Alcantara, offset by wood and carbon-fiber trim, and a complete entertainment system. It includes a pair of 15.6-inch LCD screens that drop from the headliner and WiFi. Finally, there's a touchpad integrated into the interior C-pillars to operate the system as well as the lamps, heated seats, power windows and curtains, and the sliding doors. Accommodation is clearly the emphasis here. But Brabus being Brabus, it has also optimized the BlueTec four-cylinder turbo diesel engine to produce 44 more horsepower and 52 pound-feet more torque. With output now up to 232 hp and 376 lb-ft, the van will reach 62 miles per hour from a standstill in 8.8 seconds and top out at 130 mph – and look that much slicker in the process. Related Video: Engine tuning, exclusive looks and entertainment: BRABUS Exclusive Program for the new Mercedes V-Class The new Mercedes V-Class as a sporty-elegant jack-of-all-trades: in a world premiere, BRABUS (Brabus-Allee, D-46240 Bottrop, phone + 49 / (0) 2041 / 777-0, fax + 49 / (0) 2041 / 777 111, internet www.brabus.com) presents the exclusive refinement program for the new Mercedes V-Class. BRABUS upgrades the people mover with powerful engine tuning, an exclusive appearance package, tailor-made wheels and an individual entertainment concept. A sporty-elegant design is the trademark of the BRABUS aerodynamic-enhancement kit for the new Mercedes V-Class and Vito. All components are manufactured from PUR in OEM quality, giving them a precise fit and making them easy to paint. To give the vehicle an even more distinctive face, the BRABUS designers have developed attachments for the side air intakes, which can be complemented with auxiliary LED side markers, and a front spoiler that attaches to the lower section of the bumper.