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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 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:

Mercedes G 500 4x4 is mighty mean and bright lime green

The Mercedes-Benz G500 4x42, finally ready to meet the crowds at the Geneva Motor Show, might just be the best factory-prepped expedition off-roader on the market, should Mercedes choose to build it. The short story is that some well-heeled admirers of the G63 AMG 6x6 said, "It's nice, but can you take it down a notch?" And by "notch" they meant "an axle." So the G500 4x42 gets just two portal axles instead of three, and a slew of other features. The 4x4 squared offers up a standard G-wagen body, but instead of the 5.5-liter twin-turbo V8 from the G63, there's a new 4.0-liter twin-turbo V8 with 422 horsepower and 450 pound-feet of torque. Compared to the standard G500, the track is 11.8 inches wider, the street-cred rims being 22-inchers on 325/55 R-series tires. When it's time to get dirty, they can be swapped for an optional set of 18-inch wheels with 37-inch beadlock tires. With that setup and the same wheelbase as the G500 LWB, ground clearance and fording depth are more than doubled to 17.7 inches and 39 inches respectively, the angle of approach goes from 36 degrees to 52 degrees and the angle of departure leaps from 27 degrees to 54 degrees. Breakover angle is bumped from 21 degrees to 47 degrees, a two-piece stainless steel undertray protecting the sensitive bits when you push it. The only parts that get a raised eyebrow are the carbon fiber wheel arches and bumpers, which might behave badly when they meet an immovable granite object. To escape the sensation of driving the Taj Mahal in urban environments, there's a twin spring-and-damper setup at each wheel. One of the spring-damper combos is electronically controlled and adjustable, and when called into action via the Comfort or Sport mode, takes control of wheel action; even when passive, it will kick in to automatically to stiffen the body if it detects evasive maneuvers. On top of all that, to remind you that you're in a Mercedes the interior is fitted out with Designo leather trim and diamond-quilted microfiber. Mercedes is going to gauge its Geneva reception before deciding to build it, a hurdle we're sure will be overcome. Car and Driver drove it and verified it's the real deal, with pricing - if it's built - speculated to land between the G63 AMG and G65 AMG. The press release below has all the details. Related Video: Near-series show car G 500 4x42: The G-Class Squared Stuttgart, Feb 21, 2015 -- Only a G-Class can be better than a G-Class.