2012 Volkswagen Beetle 2dr Cpe Auto Entry on 2040-cars

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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.

Recharge Wrap-up: VW Caddy TGI BlueMotion, VR tour of Tesla Model X

Take a 360-degree virtual tour of the Tesla Model X. Best viewed in the YouTube app on your smartphone, the video above - courtesy of Canadian Press Video News – allows you to look around the inside of the Model X as though you were sitting inside it. While you're viewing it, keep in mind Tesla CEO Elon Musk's words about virtual reality: "It's quite transformative. You really feel like you're there." See the video above, and read more at Teslarati. LG Chem's batteries for the 2017 Chrysler Pacifica Hybrid minivan will be the Korean company's first time engineering and manufacturing a complete battery pack in Michigan for a volume production North American plug-in hybrid. The packs include lithium-ion cells, electronics and control units. The batteries were engineered at LG Chem's Troy, Michigan facility, and will be built at the company's Holland, Michigan plant. "Our experience with entire battery packs, including cell design and manufacturing capability, as well as our expertise in vehicle integration, makes us the ideal battery supplier for the Pacifica Hybrid," says LGCPI CEO Denise Gray. "We believe our technical strengths, engineering and manufacturing expertise, position us as a leading battery and control system provider for electric vehicles today and in the future." Read more at Green Car Congress. Volkswagen Commercial Vehicles will debut its Caddy TGI BlueMotion van at the Geneva Motor Show. The van, which is suited to family, taxi or city delivery use, can run on CNG or bio-natural gas in addition to gasoline. It also features a six-speed DSG dual-clutch transmission – a first in its class. The multiple high-pressure tanks for compressed gas are located under the floor, preserving all the Caddy's precious cargo space. A TGI version of the Caddy Alltrack will also be available, initially with a six-speed manual transmission, with the DSG option arriving in the middle of 2016. Read more at Green Car Congress, and in the press release below.

VW recognizes second union at Chattanooga plant

The ongoing story of organizing workers at Volkswagen's factory in Chattanooga, TN, continues to get more complicated. Following an independent audit, the automaker has now recognized a second union at the plant called the American Council of Employees. The group was founded there last year to offer an alternative to the United Auto Workers. "I'm not anti-union. I understand that a properly run union can benefit people. We will be that union," Sean Moss, president of the ACE, said to Reuters, according to Automotive News. The group claims to represent at least 15 percent of the workers at the plant. Acceptance of the ACE has led to an interesting situation in Chattanooga because VW also recognized the UAW at the factory in December 2014, and the group has claimed to represent at least 45 percent of workers there. According to Automotive News, each union has access to management, but the UAW has more because of its larger contingent of supporters. However, neither organization has a collective bargaining agreement with the automaker. Moss may have a rough time increasing support among employees at the factory. According to Automotive News, many anti-UAW workers there are completely against unions in general. Getting these folks to join his group isn't an easy task. The UAW has been working to fully represent the VW factory for years. However, the group lost a vote to do so in 2014. It eventually created a union local there to try to build support. All of the effort comes ahead of a $900 million plant expansion to add about 2,000 jobs and build a new crossover in Tennessee. News Source: Automotive News - sub. req.Image Credit: Erik Schelzig / AP Photo Plants/Manufacturing UAW/Unions Volkswagen chattanooga vw chattanooga chattanooga tennessee ace