2014 Toyota Avalon Limited on 2040-cars

Auto blog

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.

There's a familiar ring to this 1966 video of GM's hydrogen ElectroVan

"What we need is fuel cells that can run on a hydrocarbon fuel and air." It can be fun and educational to revisit the past as we look into the future. While we do have cars that plug in today, the first big batch of hydrogen powered vehicles is not yet arrived (but the Hyundai Tucson Fuel Cell CUV is leading the way). The idea of hydrogen as a promising future technology was also true in 1960s, when General Motors made a promotional movie for the ElectroVan. Turns out, the future then shared more than a little with the future now. As you can see in the short promotional video below for the hydrogen-powered ElectroVan, a modified 1966 GMC HandiVan, a big hurdle in the mid 1960s was the difficulty of obtaining hydrogen fuel. GM offered a possible solution at the time: "Hydrogen and oxygen are expensive and impractical fuels for a car. What we need is fuel cells that can run on a hydrocarbon fuel and air." Unlike today's hydrogen fuel cell cars, the ElectroVan used liquid hydrogen-oxygen fuel cells to get a range of between 100 and 150 miles. Not bad for the first hydrogen fuel cell-powered vehicle in the world. GM tested the ElectroVan on the GM grounds before sending it into storage and then to the company's heritage center. For another view to the past, this time with some focus on electric vehicles, take a look at a video from the 1994 Chicago Auto Show, also available below. Twenty years ago, the green vehicle hype was on the Toyota EV-50 electric car, the solar-powered Honda EVX (and a solar Honda racing car) and a hydrogen-powered Mazda Miata. The announcer's enthusiasm is contagious, but as we all know, none of these vehicles ever made it to dealerships. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Chicago Auto Show, Bangshift via YouTube Green GM Toyota Technology Emerging Technologies Electric Hydrogen Cars Videos

Jonas wreaks havoc on auto industry

Many folks along the East Coast are still stuck at home from Winter Storm Jonas' brutal snowfall over the weekend, but the blizzard had some nasty temporary effects on the auto industry, too. Winter weather emergencies kept people from leaving the house, and that spelled trouble for factories and dealers. The terrible conditions in Washington, DC, even prevented the the Washington Auto Show from opening. General Motors, Toyota, and BMW had to close factories due to the weather. BMW cited concerns for its workers driving to the plant for canceling some Friday and Saturday shifts in Spartanburg, SC, according to Automotive News. Toyota closed its Georgetown, KY, factory on Friday, and GM shut down the second shift at its Bowling Green, KY, site for that day, too. Showrooms in the blizzard's path saw a massive drop in sales over the weekend because the customers weren't coming. Some affected dealers are now trying to make the best of a bad situation by offering potential buyers even deeper discounts to get them through the door, according to Automotive News. The piles of snow also mean hours of work for employees to clean off all the cars on the lot. The good news is that none of these issues should pose longterm problems. Weather reports don't show much snow for the East Coast in the coming days, which should allow the industry quickly to return to normal.