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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.

Mercedes reveals F 015 Luxury in Motion concept at CES [w/videos]

Whatever you think of the idea, autonomous vehicles are emerging as the way of the future in the automotive industry, and Mercedes is showing its vision for that driverless destiny with the F 015 concept at CES this week. Billed as Luxury in Motion, the F 015 first popped onto our radar back in October when it was snapped under wraps and then again when the German automaker released the first teaser image previewing its silhouette, but has now taken center stage at the electronics expo in Las Vegas. So what is it exactly, you ask? Well, aside from being entirely autonomous – bringing together a suite of advanced technologies to take the driver out of the equation – it's also big. It's marginally larger than an S-Class, in fact, and with a more spacious one-box form that turns the cabin into a rolling living room. That's where you'll find four individual bucket seats that swivel towards each other, and pivot towards the giant doors for ease of ingress and egress. The doors open a full 90 degrees and the back ones swing suicide-style like on a Rolls-Royce, but without a B-pillar to get in the way. An array of six display screens turn the cabin – clad in wood, aluminum, glass and leather – into an all-enveloping "digital arena," with gesture-based controls, touch-sensitive screens and eye-tracking technology. Made of carbon fiber, aluminum and high-strength steel, the concept is some 40-percent lighter than a conventional automobile of its size. And while Mercedes isn't saying exactly what would provide the motivation (and to what effect), it does state that "the bodyshell of the F 015 Luxury in Motion was designed to allow the impact-protected integration of an electric drive system with fuel cell." The concept follows the debut of the Future Truck 2025 concept big-rig at the IAA Commercial Vehicles show in Hannover a few months ago, and is earmarked to make transportation through and between the world's growing cities a smoother, safer and less human-intensive ordeal. Whether that's the kind of future you want to live in is another matter, but you can scope it out in the videos and press release below and in the extensive gallery of images above for a closer look. 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.

Brabus 850 6.0 Biturbo Coupe is an extroverted, 217-mph Mercedes S63 AMG

The Mercedes-Benz S-Class is a prime example of handsome, restrained design. It's classy but not shouty, stylish without trying too hard. Of course, Brabus can address that um, problem, for you, without much issue. Meet the Brabus 850 6.0 Biturbo Coupe, an extensively modified version of the S63 AMG Coupe. Larger intakes and lots of carbon fiber typify the front end, while the tail sports a new diffuser and rear spoiler, both of which are finished in carbon fiber. Meanwhile, Brabus is offering a variety of wheel designs, ranging in size from 18 to 22 inches, and with the customer's choice of Continental, Pirelli and Yokohama rubber. The most questionable changes, though, happen in the cabin, where black Mastik leather is finished with copper stitching and piping. Brabus then takes 219 different interior trim pieces and lines them in Shadow Gold paint, just like the Monoblock wheels featured on the vehicle above. Of course, Brabus does much, much more than just offer its own take on the normally conservative Mercedes aesthetics. There's a bit of tweaking to the powertrain. Despite the "6.0" in its name, the donor S63 AMG's 5.5-liter, biturbocharged V8 has been enlarged to just over 5.9 liters (5,912 cc, to be precise), thanks to a larger cylinder bore and a longer stroke, the latter of which comes from a Brabus-spec crankshaft. While Brabus may be exaggerating about the size of its new coupe's engine, the tuning firm is not overstating said powerplant's output. A stout 850 horsepower is teamed with an electronically limited 848 pound-feet of torque. There's more to this modded Mercedes than that, though, as Brabus claims the 5.9-liter is actually capable of turning out a silly 1,069 lb-ft, but that it needed to be limited "in the interest of the longevity of the entire powertrain." All this extra oomph comes from a pair of "special" Brabus turbochargers, as well as new exhaust manifolds and a stainless steel exhaust system. A new intake module also helps breathing, while the engine's ECU has been updated for extra performance. Aside from a new set of paddle shifters, the S63 AMG's seven-speed gearbox was left unaltered, as was the 4Matic all-wheel-drive system. Oh, and if you live in Europe and really want to scare yourself, Brabus will offer the same engine treatment to the rear-drive S63 AMG that we don't get Stateside.