2006 Mercedes-benz Cl500 Base Coupe 2-door 5.0l 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.

Submit your questions for Autoblog Podcast #325 LIVE!

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Recharge Wrap-up: Smart Silvretta E-Car Rally, Uber's autonomous Teslas

Daimler took part in the 2015 Silvretta E-Car Rally with seven electrified cars from Mercedes-Benz and Smart. It is the automakers' sixth year competing in the competition in the mountains of Austria's Montafon region. Mercedes fielded two B-Class Electric Drives, an SLS AMG Electric Drive, C350e, S500e and GLE500e 4Matic alongside a Smart Brabus Fortwo Electric Drive Cabriolet. The Silvretta Rally sees some 150 vintage cars and 30 electric vehicles take part in the event, which took place from July 2 through 5 this year. Read more in the press release from Daimler below. Uber CEO Travis Kalanick says that he'd want to buy all of Tesla's autonomous vehicles if they were available in 2020. Venture capitalist Steve Jurvetson relayed Kalanick's comments from the Top 10 Tech Trends dinner in June. Jurvetson also praises self-driving cars, saying, "I believe they are already safer than my parents, and I would trust my kids with them. And they're just going to get better." Jurvetson also believes that taxi services will prosper from the use of autonomous cars in the future. Read more at Hybrid Cars. A Michigan legislator has introduced a bill that would count burning industrial solids — such as tires and plastics — toward the state's renewable energy mandate. Aric Nesbitt's bill would "remove unnecessary burdens on the appropriate use of solid waste as a clean energy source" in order to meet the state's requirement that 10 percent of energy come from renewable sources. Critics argue that these materials are not truly renewable, and that burning them causes pollution and emits greenhouse gases. The proposed bill would also repeal a law requiring utilities to work toward reducing energy use by one percent per year. Read more at Treehugger. Will the cars National Electric Vehicle Sweden (NEVS) builds in China bear the Saab name? While NEVS is the newest parent company to Saab after being acquired in bankruptcy from Spyker, there's no confirmation that the electric vehicles it builds at its Tianjin plant will be sold as Saabs. Swedish defense firm Saab AB, which held the rights to the Saab name, withheld permission to use it after NEVS declared bankruptcy last year. "The exact models and brands are not finalized yet," says a NEVS spokesman. The company says it is spending $200 million to build the new factory in China, with an expected annual capacity of 200,000 vehicles. Read more at Automotive News Europe.