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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.

The real reason automakers are giving away free hydrogen

Just like Hyundai did with its Tucson fuel cell, Toyota is offering free hydrogen fuel with the $57,500 Mirai H2 sedan. Toyota is being a bit vague about the details, saying simply that Mirai drivers will get, "complimentary hydrogen fuel for up to three years." Turns out, the reason that the hydrogen avant-garde will not be paying anything at the pump isn't because the automakers want to give them a boost or because the OEMs are kind. Instead, it's simply impossible to accurately charge people for hydrogen right now. It's simply impossible to accurately charge people for hydrogen right now. At an in-depth hydrogen seminar this week as part of the Mirai preview, three representatives from various hydrogen organizations revealed that the current hydrogen stations (most of which are in California) are not set up to accurately measure the hydrogen that is dispensed. Without this little bit of information, you can't charge customers for the fuel they use. Toyota is well aware of this, and Toyota Motor Sales' national manager of environmental, safety and quality communications, John Hanson, said that, "There are no set standards, so there is no way to charge people for anything." Alberto Ayala, the deputy executive officer for the California Air Resources Board, said CARB is in the middle of developing a way to sell a given amount of hydrogen, "which up to this point doesn't exist. If you think about it, it's a real simple yet real practical challenge. If you're going to pay for X amount of hydrogen, you're actually getting that amount of hydrogen." Ayala said it's not a difficult technical problem to measure the hydrogen as it goes into the car, but "we just have not done it. We are at a point where we are solving multiple remaining questions [with hydrogen infrastructure], and that just happens to be one of them." The National Institute of Standards and Technology says that there has been a discussion to change the current tolerance of two percent up to 10 or 20 percent, but that new technology should be able to measure accurately to within one percent. Air Liquide is working with Toyota to launch the Mirai in the US and Air Liquide CEO Ole Hofelmann told AutoblogGreen that being able to charge customers will be key to the technology's success. "We need to make sure we accurately measure the gas," he said.

Toyota recalling 342k Tacomas due to faulty seatbelt pretensioners

Toyota is voluntarily recalling 342,000 Tacoma Access Cab pickups, produced between 2004 and 2011. The wide-ranging recall is due to faults in the screws that attach the belt pre-tensioner to the belt retractor. There are concerns that the screws can loosen themselves over time, especially if the access door is opened and closed with too much force. It's important to note that the recall only covers the driver and front passenger seat, and is limited to just the Access Cab trucks. Other body styles aren't affected.
If the screws come loose, the pre-tensioner and retractor spring could separate from the belt entirely, which would be bad news in a crash. There's no mention of injuries or accidents due to the faulty pre-tensioners. Owners affected by the recall will be notified soon, and asked to come in for recall service.