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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-Benz S-Class presentation leaked, debuting in May

WorldCarFans was reportedly sent what looks like a dealer presentation on the coming V222 series 2014 Mercedes-Benz S-Class. There have been hints for years as to the kinds of technology the world's best-selling large luxury sedan will contain, and it appears those hints had some foundation. To be shown in Germany on May 15 before a launch window that runs from September to November this year, the evolutionary design will be built of aluminum and steel, using that lighter material for the front end, roof and "detached body parts."
Among the new options buyers will be able to choose are the Rear Seat Package with rear seatbelt airbags and active buckles that extend, a Warmth and Comfort Package with heated seats front and back, heated armrests and side panels, and power rear seats with active ventilation and memory function. There's a chauffeur seating option that comes with 10-way adjustable rear seats, an extendable footrest and folding tables in the front seatbacks.
Blatant technology will be on display via two 12.3-inch screens, one for the dash cluster and one for the COMAND infotainment screen on the instrument panel. The third generation of Nightview Assist Plus will be able to detect animals as well as humans, and the next generation of Surround View will provide high-res views all around the car. A touchpad and a color head-up display will arrive in 2015. It will be the first Mercedes-Benz to utilize LED lighting everywhere, inside and outside the car.

New details emerge on forthcoming Mercedes-Benz SLC

Last we heard, the Mercedes-Benz SLC had been put on indefinite hold, but now Car Magazine is reporting that the Porsche 911-fighting "Baby SLS" coupe could be on sale by 2015. Riding on a modified SLS AMG chassis, the smaller and lighter SLC could be priced in the sub-$100,000 price bracket.
We'd already heard that the new car would feature conventional doors (instead of SLS-like gullwing doors), but this report focuses on some of the possible powertrains Mercedes-Benz is likely to use. At launch, the SLC could offer a pair of V8-powered models - a 485-horsepower SLC and a 585-hp SLC S - both being powered by a 4.0-liter twin-turbo V8. About a year after launch, a new V6 model could emerge giving the SLC an estimated 333 horsepower and its lowest price point.
It also sounds like the car's name hasn't been completely finalized as some people within Mercedes are favoring a return of the SLR name.