2011 Mercedes-benz Sl63 Amg Convertible 2-door 6.3l 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 confirms first AMG Sport models for Detroit

If you're looking for a sportier Mercedes-Benz but can't quite make the leap to a full-on AMG model, we've got some good news for you: the German automaker is about to expand its performance portfolio with a more accessible AMG Sport range. Set to bridge the gap between a standard Mercedes fitted with an AMG Sports package and a complete AMG performance variant, models in the the new AMG Sport line will feature upgraded engines, suspensions and brakes. They'll even have "all-wheel drive as standard in selected markets" (almost certain to include ours). Affalterbach has confirmed that the first two AMG Sport models will debut at the upcoming Detroit Auto Show in January. Though it's not saying which models will hit the stage, the teaser image above suggests that one of them will be the new MLC crossover coupe (or whatever it'll be called under the new nomenclature), while the other is almost certain to be the new C450 AMG Sport sedan. The launch of the AMG Sport line is part of the brand's effort to double its 2013 sales figures by 2017 to top over 40,000 units per year globally. With the AMG Sport line joining the standard AMG and AMG S models, the sub-brand is considerably expanding its product portfolio to cater to more customers and budgets, and will give Mercedes a vehicle range to challenge Audi S models and the BMW M Performance range. MERCEDES-AMG UPS THE ANTE - Growth strategy aimed at new market segments - Doubling of global sales targeted by 2017 - Premiere of the new AMG Sport models at the North American International Motor Show in Detroit Affalterbach - The sports car and high-performance brand Mercedes-AMG will achieve a new sales record of well over 40,000 units globally this year. Its entry into the compact segment and the broadening of its product range have provided the Affalterbach-based company with access to new customer groups and secured success in established and new markets. New models developed entirely in-house, such as the SLS AMG and, more recently, the Mercedes-AMG GT, consolidate the brand's success story and place it firmly on course for sustained growth. "We are proud of these successes, as they provide the basis for the next stage of our growth strategy, which we are now launching," explains Tobias Moers, Chairman of the Board of Management of Mercedes-AMG GmbH.

Child cobalt miners: Automakers pledge ethical minerals sourcing for EVs

BERLIN - Leading carmakers including Volkswagen and Toyota pledged on Wednesday to uphold ethical and socially responsible standards in their purchases of minerals for an expected boom in electric vehicle production. Demand for minerals such as cobalt, graphite and lithium is forecast to soar in the coming years as governments crack down on vehicle pollution and carmakers step up their investments in electric models. To cover its plans for more than 80 new models by 2025, Volkswagen alone is looking for partners in China, Europe and North America to provide battery cells and related technology worth more than 50 billion euros ($59 billion). Talks with major cobalt producers, including Glencore, at VW's Wolfsburg headquarters last week ended without a deal. More than half of the world's cobalt comes from the Democratic Republic of Congo, a country racked by political instability and legal opacity, and where child labor is used in mines. On Wednesday, a group of 10 leading passenger-car and truck manufacturers announced an initiative to jointly identify and address ethical, environmental, human and labor rights issues in raw materials sourcing. The partnership dubbed "Drive Sustainability" consists of VW, Toyota Motor Europe, Ford, Daimler, BMW, Honda, Jaguar Land Rover, Volvo Cars and truckmakers Scania and Volvo. The alliance "will assess the risks posed by the top raw materials (such as mica, cobalt, rubber and leather) in the automotive sector," said Stefan Crets of the CSR Europe business network. "This will allow Drive Sustainability to identify the most impactful activities to pursue" to address issues within the supply chain.Reporting by Andreas Cremer.Related Video: Image Credit: Michael Robinson Chavez/The Washington Post via Getty Images Green BMW Ford Honda Jaguar Land Rover Mercedes-Benz Automakers Toyota Volkswagen Volvo Green Automakers Green Culture Electric Scania ethics mining