2003 - Mercedes-benz Sl-class 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.

Smart brand might be doomed

Reports are painting a less than rosy picture of the Smart brand's future. The Daimler-owned carmaker is going fully electric in 2020, but that might not be enough to keep it alive for long. Inside sources, quoted by Automobile Magazine, are saying Renault is likely to pull out of the partnership that created the current Smart ForTwo/Renault Twingo pairing introduced in 2014. The two rear-engined cars share a platform, and when the current Twingo is done for, Renault might want to part ways. In addition, Mercedes isn't willing to prop up Smart on its own, and there is a possibility that the entire Smart brand could be shuttered by 2026. A previous joint venture was the ForFour hatch co-developed with Mitsubishi, and despite the ForFour name living on in the current generation rear-engined car, the earlier FWD hatchback has quickly been forgotten. Not long ago, Smart presented its Forease open-top concept to give customers a glimpse of what future Smart cars would look like, but at its heart the Forease was still a current Smart dressed up with concept car details. The next-generation Mercedes-Benz A-Class is to be signed off in 2021 for a 2025 introduction, and it can be underpinned by a more flexible, fully scalable platform that could also serve to support a new entry-level Mercedes-Benz vehicle that could render the separate Smart brand pointless. Then there's Geely, who now owns nearly 10 percent of Daimler, and who is partnering with Daimler to launch a new "premium" ride-hailing venture in China. As Geely develops its mobility solutions, it is likely to keep an eye on Smart: Smart cars have been car-sharing staples around the world for quite a while, from users such as Car2Go. Automobile Magazine says that if a Smart is co-developed with Geely, it might suit the Chinese market well, but a global business case might be challenging. In any case, if Smart wants to survive beyond the current Renault partnership, the new model should be agreed upon quickly, and it must be based on a platform flexible enough to support full electric drive. Reportedly, there are now ongoing feasibility studies for a fully electric Daimler "U-Class," which would include a Smart-like three or five-door hatch with two wheelbase options, a ride-sharing shuttle with autonomous capabilities, and an urban delivery panel van. But Smart must justify itself for the upcoming decades, or the future Daimler products that occupy its niche will be wearing a three-pointed star instead.

Brabus takes Mercedes-Maybach even further

Hard as it may be to imagine for most, even the flagship Mercedes-Maybach S600 won't be enough for some. And those individuals can now turn to Brabus to customize their limousines even further. The latest tuning package includes an array of enhancements, starting with the engine. That's where Brabus has installed all the upgrades from the Brabus Rocket 900, boring the 6.0-liter twin-turbo V12 out to 6.3 liters, and producing a massive 887 horsepower and 1,106 pound-feet of torque. That'll propel the limo up to an Autobahn-crunching top speed quoted at 217 miles per hour, reaching 62 in just 3.7 seconds. Buyers going for the less potent Maybach S500 offered in certain markets can also opt for the Brabus B50-540 performance kit, which offers 83 extra hp and a further 88 lb-ft of torque. Brabus has also fitted a choice of 21-inch wheels, retuned suspension dropped by an inch, a full aero kit, and new radiator grille. And as sumptuous as it is already, the tuner is also offering upgrades to the interior with special leather and Alcantara upholstery, wood and carbon-fiber trim, and its full iBusiness suite. All of which promises to make the flagship Mercedes even more expensive, of course, but if there was ever an example of "if you have to ask, you can't afford it," surely the Maybach is it. BRABUS refines the new Mercedes-Maybach 662 kW / 900 HP, 1,500 Nm, top speed 350 km/h plus, high-tech forged wheels, sporty-elegant design and even more luxurious BRABUS fine leather interiors The new Mercedes-Maybach represents the absolute pinnacle of state-of-the-art automotive engineering. Nonetheless, even this luxury sedan offers room for individual refinement, which BRABUS (Brabus-Allee, D-46240 Bottrop, phone + 49 / (0) 2041 / 777-0, fax + 49 / (0) 2041 / 777 111, internet www.brabus.com) realizes with a select team of the best engineers, designers, technicians and master craftsmen. The BRABUS ROCKET 900 6.3 V12 twin-turbo increased-displacement engine provides the Mercedes-Maybach S 600 with an enormous rated power output of 662 kW / 900 HP (887 bhp) and a peak torque of 1,500 Nm (1,106 lb-ft). Top speed is in excess of 350 km/h (217 mph). To match the extreme performance of the luxury liner, the appearance of the four-seat car receives some sporty-elegant emphasis with BRABUS aerodynamic-enhancement components and BRABUS Monoblock "PLATINUM EDITION" 21-inch forged wheels. Another BRABUS domain is exclusive interior design.