2020 Mercedes-benz Gls Gls 450 on 2040-cars

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Automakers face reality of EVs' cost — to jobs, and their bottom line

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage FRANKFURT, Germany — European car bosses gathering for the Frankfurt auto show are beginning to address the realities of mass vehicle electrification, and its consequences for jobs and profit, their minds focused by government pledges to outlaw the combustion engine. As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group gave details about their electric programs that could give policymakers some pause. Planned electric Mercedes models will initially be just half as profitable as conventional alternatives, Daimler warned — forcing the group to find savings by outsourcing more component manufacturing, which may in turn threaten German jobs. "In-house production is almost irrelevant to the consumer," Daimler boss Dieter Zetsche told reporters on the eve of the Frankfurt Motor Show, in the midst of a German election campaign in which automotive jobs have loomed large. The company set a target of saving 4 billion euros ($4.8 billion) by 2025 to help fund the cost of its electric cars. "Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins," said Bernstein analyst Max Warburton. "It was brave to go first — but of course it won't be the last." Volkswagen, for its part, said it was seeking new global supplier contracts to source 50 billion euros ($60 billion) of electric car content including batteries, which are not yet manufactured competitively in Europe. "A company like Volkswagen must lead, not follow," Chief Executive Matthias Mueller told reporters. VW diesel emissions-cheating exposed by U.S. regulators in 2015 triggered global public outrage, dozens more investigations into test-rigging by the wider industry and a push by some lawmakers to ban diesel and eventually all engines. TIGHTENING NOOSE Tesla shares jumped nearly 6 percent on Monday after a Chinese minister said it was a question of when, not if, Beijing bans fossil-fuel cars, tightening the noose around the combustion engine. France and Britain have promised its outright abolition by 2040. But PSA, the maker of Peugeots and Citroens, said it was concerned about the risks if consumers were left behind in the rush, and a new generation of battery cars does not sell.

Race Recap: 2015 Hungarian Grand Prix is Magyar for 'What a race!'

Every driver on the Formula 1 grid dreams of taking home the silverware, but only one driver each year can do it. Barring disaster in 2015 it looks like it's going to be Lewis Hamilton. The Brit has been so dominating at the front of the grid on Saturday, we can't see how he'll miss out on winning the second annual FIA Pole Position Trophy. That's the accolade introduced last season in another manufactured attempt to give drivers something to work for on Saturday, since the FIA felt leading into the first corner didn't have the pull it used to. Hamilton took his ninth pole of the season in Hungary for Mercedes-AMG Petronas with a crushing lap that put him almost six tenths ahead of his teammate Nico Rosberg in second. All Hamilton needs is one more spot at the top of the grid this season, and he's the Pole Position trophy winner. Thrilling stuff. Behind Rosberg the gaps stayed smaller, Sebastian Vettel in the Ferrari a little more than a tenth behind Rosberg, Daniel Ricciardo in the Infiniti Red Bull Racing less than four one-hundredths behind Vettel. We feel almost as vexed watching Kimi Raikkonen as he feels driving – he's finally got a good Ferrari, now he can't get a good weekend. The front wing broke on his car in Free Practice 1, then a water leak in Free Practice 3 robbed him of setup time on the soft tire. He lines up in fifth about two tenths behind Ricciardo. The slow, tight Hungaroring didn't agree with the Williams chassis, Valtteri Bottas the first of the Grove team drivers in sixth, his teammate Felipe Massa two places back. Between them is Daniil Kvyat in the second Red Bull in seventh. Teenager Max Verstappen put in a good showing in the Toro Rosso to grab ninth, while Romain Grosjean in a wriggling, squishy, sliding Lotus classified his appearance in Q3 at all as "a miracle." As for the race that followed, we don't expect to see another like it for a long time – it was the real thrilling stuff, one shock after another. The drama began after the first parade lap, when Felipe Massa lined up out of position and the start was aborted. The drivers did another parade lap, then lined up with everyone in place. Mercedes got swamped as soon as the lights went out. Vettel ran around both of them and led the race into the first turn, Raikkonen had come from fifth to third by Turn 1, then got the inside line on Rosberg through Turn 2 to take second place.

Our love of SUVs is killing people in the streets

Americans are fond of supersized fast-food meals and colossal convenience-store fountain drinks, even though they're clearly bad for our health and U.S. adults keep getting fatter. We also like large vehicles, and our love affair with SUVs is killing people in the streets. According to a recent investigation by the Detroit Free Press/USA Today, the increase in SUV sales over the past several years coincides with a sharp rise in pedestrian deaths in the U.S. — up 46 percent since 2009, with nearly 6,000 people killed in 2016 alone. With SUV sales surpassing sedans in 2014 and pickups and SUVs currently accounting for 60 percent of new vehicle sales, it's no wonder Ford announced in April plans to cease U.S. sales of almost all passenger cars. And this followed Fiat Chrysler's move to virtually an all-truck, -SUV and -crossover lineup. While the Freep/USA Today investigation found that the simultaneous surge in SUV sales and pedestrian deaths comes down to vehicle size, it also points to a lack of action on the part of the National Highway Traffic Safety Administration (NHTSA), even though it knew of the dangers SUVs pose to pedestrians. Also blamed are automakers dragging their feet on implementing active safety features. Using federal accident data, the Insurance Institute for Highway Safety (IIHS) determined that there was an 81 percent increase in single-vehicle pedestrian fatalities involving SUVs between 2009 and 2016. Freep/USA Today's analysis of the same data by counting vehicles that struck and killed pedestrians instead of the number of people killed showed a 69 percent increase in SUV involvement. As far back as 2001, researchers at Rowan University forecasted a rise in pedestrian deaths as Americans began switching to SUVs. "In the United States, passenger vehicles are shifting from a fleet populated primarily by cars to a fleet dominated by light trucks and vans," the researchers wrote, with light trucks comprising SUVs.