2005 Gl 2.0l 2.0l Blue 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.

Volkswagen could build plug-in hybrids in China

When you're Europe's largest automaker and your largest global market happens to be the one most notorious for its pollution (China), some solutions just present themselves. Volkswagen may be heeding that call. During the upcoming Beijing Motor Show, the company is expected to announce plans to produce plug-in hybrid electric vehicles in China, Reuters says, citing sources within the company. Few details have emerged, though the plug-ins will likely be produced at VW's Foshan factory in South China, which currently makes the Golf and Audi A3 and has plans to eventually make 600,000 vehicles annually. News has been percolating for a while, as Oliver Schmidt, general manager engineering and environmental office for Volkswagen Group of America, said last March that the company was planning at least two plug-in hybrid lines under the VW badge (and another three with its Audi and Porsche affiliates), including possibly a Touareg and Jetta PHEV. VW said late last month that it was looking to speed up development of "particularly eco-friendly models" made by Shanghai Volkswagen as well as developing a "new, very eco-friendly vehicle" with First Automotive Works (FAW). Earlier this year, VW unveiled its Golf GTE plug-in hybrid at the Geneva Motor Show. That model has a 1.4-liter turbocharged four-cylinder engine and an electric motor to provide 201 horsepower and 258 pound-feet of torque. The car can travel as many as 81 miles on electric power alone.

VW previews retouched 2014 Touareg for Beijing

Volkswagen is in New York this week showing off its new Jetta and Golf TDI SportWagen concept. But in less than a week, the German automaker will be off to China for the Beijing Motor Show, where it will showcase the revised Touareg you see here.
A subtle update on the Touareg that's been on the market in its current form for four years now, the facelifted model features reworked styling front and rear, an updated interior and a host of new technologies to keep it current in the highly competitive SUV market. Among those new features are larger bi-xenon headlights, coasting function, Google Maps integration and a post-collision braking system designed to prevent a second crash.
VW will offer the new Touareg with a variety of engines around the world, but in North America it'll carry over the same six-cylinder powertrain options as the outgoing model: a 3.6-liter V6 with 280 horsepower, a 3.0-liter turbodiesel V6 with 240 hp (though torque isn't listed, we'd expect around 406 pound-feet, same as last year) and a hybrid that marries a 3.0-liter supercharged V6 to an electric motor that combine to deliver 380 hp.