2013 Mercedes-benz Slk-class 2dr Roadster Slk250 on 2040-cars

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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.

Brabus to storm Geneva with 800-hp version of Mercedes SL65 AMG

At no point during our recent drive of the 2013 Mercedes-Benz SL65 AMG did we ever think, "You know, this thing sure is slow." After all, Merc's range-topping SL comes fitted with a twin-turbocharged 6.0-liter V12 capable of sending 621 horsepower and 738 pound-feet of torque to the rear wheels. But just in case you're still all "meh" about what the SL65 throws down, Brabus will gladly come to your rescue with this, the 800 Roadster.
As its name suggests, the 800 Roadster ups the V12's power figures to 800 horsepower and - wait for it - 1,047 pound-feet of torque. Don't get too excited, though - that torque number has been electronically limited to a measly 811 lb-ft since, you know, the transmission would probably explode if you tried to put the full force through it. Nevertheless, these represent increases of 79 hp and 73 lb-ft over the standard SL65, and that means the 800 Roadster can shoot to 62 miles per hour in just 3.7 seconds - two-tenths of a second quicker than the Merc its based on. More impressively, hitting 124 mph takes just under 10 seconds, and the droptop will finally top out at an electronically limited - limited! - 217 mph. Holy smokes.
To manage all of that speed, Brabus has engineered a special carbon fiber aero kit that reduces lift, and a unique control module for the SL65's active body control suspension lowers the ride height by one full inch. The 800 Roadster rides on new 20-inch wheels, and a unique limited-slip rear differential was added, featuring a 40 percent locking rate that further enhances performance when you're attempting to control the beast at its limits. Interior upgrades include new leather and alcantara surfaces throughout the cabin, including a leather-clad trunk.

Mercedes widens luxury sales gap on strong early CLA demand

Mercedes-Benz CLA sales have been booming, with the Stuttgart-based manufacturer moving 2,300 of the sleek four-doors in its first week on sale. That is astonishing. Mercedes moved nearly twice as many CLAs (which start at $29,900) in one week than Jaguar, a brand that is on a very solid roll, sold in all of September. Ignoring the price differences between the Jag line and the CLA, that is still wildly impressive.
Mercedes has been pushing the CLA in television ads, using a shortened version of its Super Bowl spot, which starred William Dafoe, Usher and Kate Upton. "As the bargain entrance into the Mercedes portfolio, we weren't sure how luxury buyers would react," Kelly Blue Book auto analyst Alec Gutierrez told Bloomberg.
The CLA push was just part of MB's 6.7-percent increase in September sales, which were also helped along by a 17-percent jump in E-Class sales. That surge has allowed Mercedes to widen its 2013 sales lead over its rival, BMW, to 2,491 cars, according to Bloomberg. If CLA sales continue at this rate, we can only expect that margin to grow.