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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 Canadian F1 Grand Prix is better behind the front

As of Saturday afternoon in Montreal, Canada, it was all about the number four. Lewis Hamilton put his Mercedes-AMG Petronas on pole position for the fourth time at the Circuit Gilles Villeneuve, and now his tally of pole positions matches his race number: 44. Nico Rosberg lines up beside him, which is the fourth time that particular one-two combo has occurred this season. Ferrari spent three engine development tokens to try and close the gap to Mercedes, Kimi Raikkonen making the most of it with third position on the gird. His teammate Sebastian Vettel got the worst of it, however, when the MGU-K unit failed during Q1, leaving him 160 horsepower down and out at the first hurdle. Valtteri Bottas put a revitalized Williams on the grid at fourth, ahead of a Lotus lockout of the third row with Romain Grosjean leading the way in fifth, Pastor Maldonado just beside. Nico Hulkenberg got the first Sahara Force India into seventh – the team is still waiting on the upgraded B car that should be available for Austria – ahead of Daniil Kvyat in the first Infiniti Red Bull Racing and a "pissed off" Daniel Ricciardo in the second Red Bull. Sergio Perez made it two Force Indias in the top ten, a welcome result from a team performing below expectations of late. When the lights went out, at the very front it was much ado about not that much at all. Hamilton got away clean and stabbed across the track to close the door for Rosberg, giving Raikkonen a chance to take the inside line into Turn 1 in an attempt to clear Rosberg for second place. That didn't happen, leaving the two Mercedes' to run in grid position for the entire race. It wasn't boring – Rosberg stayed close, rubber-banding the time gap to the leader from a little more than one second to just under four seconds, and Montreal is famous for race-rearranging safety cars and on-track incidents. But none of those occurred, so Hamilton crossed the line 2.285 seconds ahead of Rosberg after 70 laps to earn his fourth victory in Canada and the first-ever victory for the Brackley, UK-based Mercedes team. Valtteri Bottas drove his Williams to third position, the first podium place for the team this year and a welcome salve to heal the team's wounds from a poor showing in Monaco. That placing came courtesy of being in the right place at the right time, which was not far behind Raikkonen when the Ferrari driver spun at the hairpin on Lap 28 after his first pit stop.

2014 Mercedes B-Class ED battery much bigger than previously stated

There was something unexpected hiding in the new configurator for the 2014 Mercedes-Benz B-Class Electric Drive: a $600 "Temporary range extender." Since we've never heard of such a thing, we had to click through for more. The official explanation runs like this: A suite of options to further increase your driving range includes added insulation of the doors and roof for to increase climate-control efficiency, along with an electrically heated windshield and a range-extending charge function. By pressing a button on the console prior to charging, the maximum charge level for battery will increased for the next charge cycle. The higher-capacity charge can provide up to 17 additional miles of range. The passive features that increase range should be standard in all models, we think. But we were more curious about the battery charge situation. How do you increase a maximum? And is it a good idea to do so? The configurator includes this disclaimer, after all: Range extender should only be used on a limited basis, and could shorten battery life if used excessively. How much is excessive? We investigate below. The B-Class ED has, according to the specs, a 28-kWh battery. First, let's understand what this "temporary range extender" is all about. The B-Class ED has, according to the specs, a 28-kWh battery. But Terry Wei, from the Mercedes-Benz USA product and technology communications department, confirmed to AutoblogGreen that the B-Class ED is actually hiding a 36-kWh battery, but the automaker is calling it a 28-kWh battery because that's how much energy capacity is used in day-to-day use. Most automakers publicly claim the actual capacity and then admit they use a percentage of it. The Chevy Volt, for example, has a 16.5-kWh battery pack, but a "full charge" only fills up around 65 percent of that. In the B-Class ED, the 28 kWh of useable energy provides an EPA-certified 87 miles of range. But, since there are eight kWh of reserve, the temporary range extender (we think of it as a software update accessed by a button) can access some of that and offer the aforementioned 17 miles. Now that we know what we're dealing with, this reminds us of an evolved version of the "remote wireless charging" feature that was touted in the Reva EV. Wei said that the reason the feature is optional is because Mercedes doesn't think most people will need it. Eighty-seven miles is plenty for your average EV driver, but when you want to have 100+ in the tank, you can.