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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 dealers authorized to spend $2,500 on perks for S-Class customers

If you drop $100,000 on a luxury sedan, it seems only reasonable to receive some preferential treatment at the dealership you purchased from. After all, that price isn't just for the car - you're paying for the brand and all the cachet that entails. For Mercedes-Benz, those benefits have apparently been lacking relative to the German brand's luxury competitors.
That's set to change, though, as Automotive News reports that the German brand is placing a much greater emphasis on keeping its customers happy and loyal with its MB Select program. Starting with the new S-Class and spreading to the CLA-Class (and eventually beyond), dealers are being given money - up to $2,500 in the case of the flagship sedan - just to improve the customer experience.
We agree, improving the "customer experience" is quite a vague term, so it's nice that Mercedes USA's CEO, Steve Cannon, offered up some examples to AN at the LA Auto Show. For example, a customer couldn't fit his sunglasses into the overhead compartment. "So we bought him a pair of Ray-Ban sunglasses that fit because of their shape," Cannon said.

Gullwing America turns SLS AMG Roadster into stunning 1955 300 SC redux

Gullwing America specializes in what it calls "retro styling meets modern technology." It's next demonstration of that is the convertible above, a stylized recreation of the 1955 Mercedes-Benz 300 SC (inset) supported by the structure of a 2012 SLS AMG Roadster. Commissioned by a client in Eastern Europe, the resulting car is called the 300 SLC.
The hand-formed aluminum bodywork required just a few changes to the SLS AMG Roadster, namely reworking the headlights into a stacked arrangement of LEDs and relocating the pop-up spoiler behind the cabin. The retro grille and long, straight hood evoke the past, the custom exhaust, height-adjustable suspension, 21-inch wheels up front and 22-inch wheels in back, however, stray a little further from history. The 300 SLC will come with a hardtop and be one-of-a-kind, making it even rarer than its inspiration, of which 92 were made.
If you have any more questions, they can probably be answered in the high-res photo gallery above and press release below.