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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-Benz previews its curvy sports-car and design future

Suggesting creases are passe for automotive design, Mercedes showed off ideas for its future styling directions this week at a forum in Germany, including previews of upcoming sports cars and sedans. We see images of a curvy sports car study (the silver car) with huge wheel arches flared out almost like pontoons. There's also what appears to be a rear-engine hypercar (white car); we've been reading reports about it for months. Additionally, there's a red sporty saloon, as Mercedes calls it, also among the photos. It features prominent rounded fenders and a bold horizontal grille. Mercedes also previewed its upcoming A-Class, in what it calls the Aesthetics A sculpture, which looks like a car covered in a red sheet. Though Mercedes says this is its next step to a purer design, creases and strong lines are still evident on the sides. Related Video:

2015 Austrian F1 Grand Prix switches to alternating current

It's called the Red Bull Ring, guests are welcomed by a statue of a leaping bull, and dominating its layout demands powerful cars that can run it hard. Perhaps all that aggression is what led both Mercedes-AMG Petronas cars to run off the track in the final qualifying session on their final hot laps, a little too aggressive on the charge. Lewis Hamilton was first into the gravel at Turn 1 when he lost his car under braking, but he was still fast enough to get pole ahead of teammate Nico Rosberg, who spun at Turn 8. Rosberg started second. Or perhaps it wasn't the red bull but the scarlet horse that caused The Silver Arrows to muck it up: Ferrari driver Sebastian Vettel had Mercedes' attention all weekend, and he'd line up in third just 0.355 off Hamilton's time. Williams truly rediscovered its power, Felipe Massa going fourth fastest, teammate Valtteri Bottas in sixth. Between them was newly-minted Le Mans winner Nico Hulkenberg, yet again – can we say that enough? – pulling the still-not-updated Force India to fifth place on the grid. Max Verstappen led the Renault-powered top-ten duo in his Toro Rosso in seventh, Infiniti Red Bull Racing driver Daniil Kvyat behind him in eighth. Kvyat, however, would start down the order because of a ten-place grid penalty for needing a fifth Renault engine. After that it's back to Mercedes Ferrari power, Felipe Nasr in the Sauber in ninth, Romain Grosjean in with Mercedes power in the Lotus in tenth – but fellow Lotus driver Pastor Maldonado actually started in tenth because of Kvyat's demotion. Before we get to the race, can we take a moment to talk about the shenanigans and gaudy penalties? Kimi Raikkonen waved the Ferrari flag in Canada after a season that's been full of "We didn't get it right this time," and we thought he was back. But no. In Austria the refrain returned, the Finn kicked out of Q1 after another miscommunication with the team – he qualified 18th. If the scenario plays to form, we'll now wait for team boss Mauricio Arrivabene to issue a clarification that suggests Raikkonen missed a step. Daniel Ricciardo parachutes ten spots back for the same reason as his teammate Kvyat, needing a fifth Renault power unit, dropping him to 18th on the grid and forcing him into a five-second time penalty when he comes in to pit.