Auto blog

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.

2015 Mercedes C-Class owners reporting bleeding seats [UPDATE]

UPDATE: Daimler AG became aware that, in a small number of individual cases, it is possible for temporary spots and/or shiny patches to form on the man-made leather surfaces of the 2015 C-Class in sub-freezing temperatures. No accidents or injuries have been reported, and we have no reason to believe that there are any hazards to customers. Replacement parts are expected to start shipping to dealers by next week. Owners of the 2015 Mercedes-Benz C-Class are learning the hard way that you don't necessarily want to buy a new vehicle in its first model year. Besides reports of poorly fitting taillights and faulty infotainment touchpads, a number of reports are popping up on the forums of MBWorld.org claiming that the compact luxury sedan's seats are, for lack of a better term, bleeding. Owners of US-built, 2015 C-Classes fitted with MB Tex vinyl interiors are reporting a white, oily, shiny residue discoloring their seats that shows up, often after cold cars are quickly heated. It's important to note that this residue is not necessarily staining the seats permanently – warm, soapy water is often all that's needed to restore the original finish. In other cases, the residue disappears of its own accord, only to reappear in an entirely different pattern. That doesn't make things any more acceptable to owners, many of whom have reached out to Mercedes with complaints. It's not clear how many vehicles are affected, but there are a sizable number of forum threads on the issue on MBWorld alone, and the problem is prevalent enough that Mercedes has issued a technical service bulletin to its dealers. According to the forum postings, the TSB instructs service technicians to replace the headrest and seat cover (except for the front, passenger-side seat bottom because of "factory calibration issues") in affected customer vehicles. New C-Class models in dealer inventories, meanwhile, are to get the soapy water treatment if they're showing signs of the residue. Neither one of those moves seems to represent a long-term fix, though. Black MB Tex seats – both the standard and sport variety – seem to be particularly susceptible to the residue, although we stumbled across at least one image of what looks like Silk Beige MB Tex with speckles of residue.

2014 Mercedes-Benz CLA250 Sport

Mercedes Makes A Mighty Little Sedan
We got overexcited when the W203 Mercedes-Benz C-Class sedan came out in 2001, calling it the "Baby Benz" when it really wasn't. We knew that, too, but our enthusiasm for a model more like the old 190 of the '80s was so strong that we were willing to stretch the first-gen C-Class to fit that mold. Today, the C-Class has done what all German premium cars do: grown in size. In this case, grown to satisfy the market intentions of the previous E-Class.
There was the tall A-Class sold from 1998 through 2010, but we never considered that a serious small Benz in the proper spirit, nor was it ever offered in the US. Regardless, we've been craving a smaller, premium, sexy sedan all the while.