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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 profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.

2019 Mini Oxford Edition is the cheapest way to get a Mini, but only for college students, grads

Mini makes a play for young car buyers with its latest 2019 Hardtop model, the Oxford Edition. It's more on par with a new trim level, but it's a highly compelling one as it's the cheapest version of the Mini available, and it comes with even more standard features than the regular base Mini. The catch is you have to either be in college, or recently graduated, to get it. Specifically, you have to be a full- or part-time student enrolled in a 2-year, 4-year or graduate school program at an accredited college or university. You're also eligible if you've graduated from one of those programs within 12 months of buying the car. If this describes you, you can have a turbo-charged three-cylinder two-door Mini Hardtop for $20,600, or the four-door for $21,600. That's a $2,150 discount over a normal base trim Mini called Classic. Even better, the Oxford Edition is equipped much better than the Classic, with larger 17-inch wheels, heated seats and a panoramic sunroof as standard. There are even a couple more colors to pick from adding British Racing Green and Starlight Blue to the Classic's selection of red, white, black and silver. An automatic transmission is also standard, which is usually a $1,250 option on the Classic, but a manual transmission is still available. Mini says that all the features amount to a $6,900 value, though it's difficult to gauge that since features such as the sunroof aren't available on the Classic, but it's a standard feature on the roughly $26,000 Mini Signature. All-in-all, the Mini Oxford Edition is a great deal for a young buyer with a desire for a Mini. And that's easy to understand, since we've enjoyed the ones we've driven. Related Video: