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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.

Lincoln Aviator returns, VW ponders pickups, and Subaru Forester endures

NEW YORK – Volkswagen is taking a hard look at a pickup truck, the Lincoln Aviator is back, and you love old Subarus (we'll explain). The New York Auto Show returned last week with flair and a wide range of promising reveals. Let's break down some of the big news, plus a few things you might have missed. News: Ford is fortifying Lincoln with the Aviator SUV Views: Doing a mid-size SUV is obvious. Calling it the Aviator wasn't. I like it. Using Navigator design cues, this thing looks the part and should give Lincoln some energy and sales volume. Not playing in the midsize SUV segment has been a mistake for Ford's luxury brand, and the Aviator should fill a much-needed hole. Props to Lincoln for dusting off the Aviator name, most recently used on a rebadged Ford Explorer built in 2003-2005. It sounds classy and historic, like something from 1930s, even though it only dates to the tail end of the " Friends" era. Speaking of names, when the MKC gets a new one, Lincoln should dust off Zephyr, a moniker it actually used in the '30s and then briefly in the early 2000s. Why use the Aviator name? Jim Farley, Ford's president of global markets, said it's about reminding consumers that Ford has traditionally built strong SUVs. "I think in a way the legacy is falling in love with what we do best," he said. "We wanted to go back to our roots. We know how to do this well." Farley also said the Aviator could prove to be Lincoln's bestseller. The Aviator was well-received in New York, earning our Best in Show award and garnering cautiously optimistic reactions from some analysts. "Lincoln ran this experiment once before ... differences in the market conditions, stronger differentiation and appetite for utility vehicles may prove a different story for this Aviator," IHS analyst Stephanie Brinley said. View 19 Photos News: VW surprised the car world with the Atlas Tanoak pickup concept Views: Good move. VW should build this. The concept is based on a longer version of the Atlas platform and would take aim at the midsize truck segment. VW is using this prototype to "gauge the reactions" of automotive influencers, but make no mistake, the Tanoak is totally doable. Using Atlas bones and mechanicals punched up with rugged styling and some soft-road capability, the Tanoak would grow VW's portfolio in a smart way. The Atlas Cross Sport concept, also revealed in New York, signals that Atlas expansion is already underway.

Volkswagen unveils sportier Passat Performance Concept ahead of Detroit debut

Ahead of its official unveiling at next week's Detroit Auto Show, Volkswagen has released some preliminary details and images of its Passat Performance Concept - a car that, as its name suggests, adds a little more spice to the automaker's midsize sedan formula. VW makes no mention of any production intent for this road-ready-looking sedan, simply stating that the Performance Concept is a way to "explore this practical four-door's sportier side."
It certainly doesn't look too sporty, the only visual upgrades being larger 19-inch wheels, dual exhaust, bi-xenon headlamps with VW's Advanced Front Lighting system, LED taillmaps and carbon-look mirror caps. Inside, there are carbon interior accents and two-tone leather upholstery. But no matter, the real upgrades for this mightier Passat are found below the sheetmetal.
Powering the Performance Concept is a 1.8-liter turbocharged four-cylinder engine, churning out 250 horsepower and sending its grunt to the ground via a six-speed automatic transmission. For reference, that's 80 more horsepower than the Passat's base 2.5-liter inline-five, but 20 horsepower less than the potent 3.6-liter VR6. As for other performance upgrades, Volkswagen has fitted the car with a lowered sport suspension and revamped electronic steering, which should indeed add a bit more dynamic feedback to the already nice-driving sedan.