2008 Volkswagen Rabbit S Hatchback 2-door 2.5l 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.

Latest Volkswagen Transporter shows itself as the modern Microbus

With a model history dating back to 1950, the newly unveiled Volkswagen Transporter has a long legacy to uphold as one of elder statesmen of the commercial vehicle world. The sixth generation maintains the classic boxy look, and VW even admits that the shape is "modernized cautiously." Still, the changes show handsome improvements like creases in the hood and a grille that better integrates into the headlights. Rather than styling, economy is more on the minds of many commercial buyers. VW ticks that box with an average 15-percent improvement in fuel consumption across the lineup, thanks in part to standard stop/start. The engine range includes a 2.0-liter diesel four-cylinder available in 83-, 101-, 148- and 201-horsepower variants. There's also a 2.0-liter gasoline-fueled four with either 148 hp or 201 hp. VW is really working to make the Transporter a safer, more comfortable carrier for its new generation. The van is available with features like adjustable shocks, adaptive cruise control, a power tailgate and the company's City Assist Braking system, which is capable of automatically bringing the van to a stop from under 19 mph. The Driver Alert System even monitors behavior behind the wheel and advises when to take a break. VW offers the T6 in many variants, including the Multivan for carrying people and mixed use Caravelle, but the highlight at launch is the fantastic looking Generation Six special edition (pictured above). Based on the Multivan Comfortline, the retro, two-tone paint is optional, but standard features include LED headlights, chrome trim and Alcantara seats. While the latest Transporter isn't coming to the US, European buyers can order one soon with a base price of 23,035 euros ($27,000). Generation SIX: world premiere of the new T series Classic Transporter design is even sharper, more precise, higher end Better fuel economy – new engines with stop/start function as standard Better safety – latest driver assistance systems More comfort and convenience – adaptive chassis, electrically adjustable seats and electric tailgate More information – new radio-navigation system with integrated online services Prices start below level of previous model Hannover/Amsterdam, 15 April 2015 – Today, the Volkswagen Commercial Vehicles brand presents the sixth generation of the successful Transporter model series that is produced in Hannover.

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.