1964 11 Window Bus 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.

VW midsize crossover production headed for Chattanooga

Potential labor woes aside, it looks like Volkswagen's Chattanooga, TN factory must have done something that impressed the bosses in Germany, because it sounds like the three-year-old factory is set to score a second model.
The factory currently builds the Passat, and has been in the running alongside VW's Puebla, Mexico factory to build a new crossover vehicle, likely based on the CrossBlue Concept. According to Bloomberg, a pair of unnamed sources have confirmed that Chattanooga is the favorite ahead of an official announcement.
When last we heard about the CrossBlue Concept, word was that a production decision had been delayed over concerns about the three-row CUV's business case. That August 2013 story claimed that a decision regarding the CrossBlue would be pushed back until early in 2014, which means we're ripe for some sort of news, whether good or bad.

Ecotricity offering 1,000 free EV miles to new customers

Ecotricity is offering electric vehicle drivers in the United Kingdom an lengthy incentive for using green energy: 1,000 miles of free fast charging per year. Called "Green Electricity + Car," the program will power customers' homes with renewable power allow them to charge their cars through Ecotricity's national network of fast chargers, which the company has named the Electric Highway. It makes complete sense for Ecotricity. "To get the greatest environmental benefit from an electric car, it needs to be charged using 100 percent green electricity from the wind and the sun – otherwise you're still powering it from dirty fossil fuels," wrote Dale Vince, founder of Ecotricity. Ecotricity, a UK-based producer of green energy, wants to bring fast charging to 90 percent of highway service stations around the UK in the near future and four fast chargers are installed per week under the Electric Highway campaign, the company says. Users can fast charge their EVs in 20-to-30 minutes. Ecotricity recently instituted a price freeze for all gas and electricity customers until April 1, reducing energy costs below what's being billed by the country's "Big Six" energy companies. Green Electricity + Car coincides with Volkswagen bringing its electric e-Up! to the British market. Volkswagen Group (UK) Limited imports VW, Audi, SEAT and Skoda brand vehicles and has signed a deal with Ecotricity as its official green energy supplier. Volkswagen Group customers purchasing an EV through one of its brands can take advantage of a new, reduced-cost Ecotricity tariff and a free smart meter installation. 08 February 2014 Green Electricity + Car Drivers of electric cars will receive 1,000 free miles every year with a new electricity tariff being launched by green energy company Ecotricity. Green Electricity + Car – will not only power customers homes with green energy but also their cars (either 100% electric or plug-in hybrids), plus they'll get free access to Ecotricity's national network of fast chargers[1] – the Electric Highway. This latest move comes after Ecotricity announced a price freeze for all gas and electricity customers until the end of winter (April 1st), making them cheaper[2] than the standard tariff of the Big Six energy companies.