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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 reveals F 015 Luxury in Motion concept at CES [w/videos]

Whatever you think of the idea, autonomous vehicles are emerging as the way of the future in the automotive industry, and Mercedes is showing its vision for that driverless destiny with the F 015 concept at CES this week. Billed as Luxury in Motion, the F 015 first popped onto our radar back in October when it was snapped under wraps and then again when the German automaker released the first teaser image previewing its silhouette, but has now taken center stage at the electronics expo in Las Vegas. So what is it exactly, you ask? Well, aside from being entirely autonomous – bringing together a suite of advanced technologies to take the driver out of the equation – it's also big. It's marginally larger than an S-Class, in fact, and with a more spacious one-box form that turns the cabin into a rolling living room. That's where you'll find four individual bucket seats that swivel towards each other, and pivot towards the giant doors for ease of ingress and egress. The doors open a full 90 degrees and the back ones swing suicide-style like on a Rolls-Royce, but without a B-pillar to get in the way. An array of six display screens turn the cabin – clad in wood, aluminum, glass and leather – into an all-enveloping "digital arena," with gesture-based controls, touch-sensitive screens and eye-tracking technology. Made of carbon fiber, aluminum and high-strength steel, the concept is some 40-percent lighter than a conventional automobile of its size. And while Mercedes isn't saying exactly what would provide the motivation (and to what effect), it does state that "the bodyshell of the F 015 Luxury in Motion was designed to allow the impact-protected integration of an electric drive system with fuel cell." The concept follows the debut of the Future Truck 2025 concept big-rig at the IAA Commercial Vehicles show in Hannover a few months ago, and is earmarked to make transportation through and between the world's growing cities a smoother, safer and less human-intensive ordeal. Whether that's the kind of future you want to live in is another matter, but you can scope it out in the videos and press release below and in the extensive gallery of images above for a closer look. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Mercedes driver Lewis Hamilton buys LaFerrari

Lewis Hamilton has driven some of the fastest cars ever devised, like the McLaren MP4-23 with which he won the 2008 Formula One World Championship, the Mercedes W05 with which he won the title last year, and the new W06 he drove to the checkered flag in the season opener earlier this month. But what does he drive in his spare time? According to the latest reports quoting his boss Toto Wolff, the reigning champ celebrated his win at the Australian Grand Prix by ordering a new LaFerrari. The seven-figure, 950-horsepower hybrid hypercar may be made by a rival manufacturer to the team for which he drives, but then his employers at Mercedes don't (for the time being at least) build anything that competes in the segment – unlike his former employers at McLaren that offer the similarly potent P1. Something tells us he won't be invited to drive it at Fiorano, though - which is something his rivals Fernando Alonso, Kimi Raikkonen and Sebastian Vettel have all had the chance to do. Hamilton has a long-established penchant for driving twelve-cylinder exotic supercars in his spare time. At his previous place of work, he was promised an exceedingly rare McLaren F1 LM – valued at some $4 million – but only if he won three world titles for the Woking-based team. He also owns a Pagani Zonda that was made specifically for him with a 760-horsepower engine (supplied, naturally, by Mercedes) and a six-speed manual – complete with a clutch pedal, which (apart from starting off the line) is something he doesn't usually get to operate during working hours. Related Video: