1980 Mercedes Benz 450sl Coupe Convertible on 2040-cars

Auto blog

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 goes boating again with G63 AMG-inspired Cigarette

Cigarette Racing has another Mercedes-Benz AMG-themed boat headed out to sea. After The SLS AMG-inspired 46-foot Rough Rider in 2010 and the C63 AMG Black Series-inspired 50-foot Marauder in 2012, this year's Miami Boat Show will introduce the 42-foot Huntress, theme provided by the G63 AMG.
The latest Cigarette homage is less overly racy than the ones before, befitting a watercraft modeled off a performance SUV, but don't let the looks fool: there are five Mercury Racing Verado 350SCi outboard engines, each one of them packing a supercharged inline six-cylinder with, natch, 350 horsepower. Those 1,750 horses will be good for 78 miles per hour when you've got some saltwater underneath you.
If you're in South Florida this week, Booth B-23 at the Miami Convention Center could be your best place to see it. Otherwise, like the 536-hp G63 AMG, it could be hard to catch. There's a press release with more information below.

McLaren F1 boss says team will dethrone Mercedes

Motorsports Honda McLaren Mercedes-Benz F1 mercedes-amg