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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.

SRT Viper dukes it out with Mercedes SLS Black Series in new Head 2 Head

In Episode 36 of Motor Trend's Head 2 Head, now that the Corvette ZR1 is no more, Jonny Lieberman has to look overseas to the Mercedes-Benz SLS AMG Black Series for a challenger with similar philosophy to the SRT Viper: long hood hiding a high-horsepower engine set way back, rear-wheel drive, tiny trunks. That puts the Viper's 8.4-liter V10 with 640 horsepower and 600 pound-feet of torque against the SLS AMG's 6.2-liter V8 with 622 hp and 468 lb-ft.
However, the congruences in philosophy and magnitude of numbers doesn't translate to the driving experiences of the two, which are literally and figuratively on different continents. Lieberman gets a handle on the two of them on Northern California roads, Randy Probst then finds out how, and how quickly, they can lap Laguna Seca.
They both get kudos for being improvements on their original sources, but only one of them can take the win. You can find out by watching the video below.

Mercedes takes VW Westfalia Camper idea upscale with new Marco Polo

Earlier this year, Mercedes-Benz revealed the new V-Class. Slotting in below the popular Sprinter, the new V-Class replaced both the Viano and Vito upon its debut at the Geneva Motor Show. But Mercedes isn't quite done with it just yet. At the upcoming Caravan Salon in Düsseldorf, Germany, Mercedes will reveal the Marco Polo - a versatile, stylish and decidedly contemporary take on the classic camper van.
Named after the famous Italian explorer, the Marco Polo was converted by Westfalia, an outfit which you might more closely associate with classic VW camper vans but which Daimler absorbed over a decade ago. Offering, according to the press release below, "a maximum of opportunities to be independent, free and spontaneous," the Marco Polo sleeps four thanks to the rear bench that electrically folds flat into a bed and the second berth under the pop-top. The flexible interior is decked out like you'd expect a modern Mercedes to be, with ambient LED lighting as well as wood, metal and piano black trim.
It's got an onboard kitchenette with two gas burners, a sink and fridge with a 10 gallons of fresh water and an even bigger waste tank. All that gear is shlepped around by a choice of four-cylinder turbodiesel engines ranging in output from 136 to 190 horsepower. The relatively compact form boasts a turning circle similar to a full-size sedan and a height designed to fit into most garages and car washes. All of which just might make us reconsider the appeal of traveling by camper van.