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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.

Mercedes previews GLC crossover coupe concept for Shanghai

Say what you will about slant-backed crossover coupes: if the industry has learned anything from BMW and its X6, it's that they're popular... and profitable. Little wonder, then, that Mercedes followed suit with the release of the GLE Coupe. And now it appears set to follow the lead set by the BMW X4 as well with a smaller GLC Coupe... at least, that is, in concept form. Previewed in this latest teaser rendering is the Concept GLC Coupe, a design study which Mercedes is set to present at the Shanghai Motor Show later this month. The statement that accompanies it (which you can read below) doesn't tell us much, except to say that it is "near-production-standard" – which is to say that it stands a strong chance of reaching showrooms. As it is, the GLC with a conventional roofline is set to take the place of the GLK in Benz's expanding crossover lineup. The emergence of this concept ought to preview that new model's styling, regardless of how steeply its roofline tapers off towards the back. The Shanghai show is, incidentally, the same venue Mercedes originally floated the idea of its smallest crossover with the presentation of the Concept GLA two years ago. And as we all know, that subsequently entered production – in a form closely following that of the concept. So we wouldn't be surprised to see a GLC Coupe emerge in close proximity to its more conventional counterpart (maybe even before), heavily influenced by the show car we'll see later this month. Related Video:

Mercedes-Maybach GLS prototype caught testing with its big new grille

The new Mercedes-Benz GLS is a massive tech fortress on wheels, so the Maybach GLS is bound to be a massive tech castle. Last we heard from the gigantic Benz SUV was that it was going to be built at Mercedes’ Alabama plant. With a starting price expected to be around $200,000, itÂ’ll probably be the most expensive vehicle produced in the U.S. These spy shots give us an idea of what weÂ’re going to be looking at when the production SUV is finally revealed. Our first hint that this prototype is a Maybach is the grille. It looks suspiciously similar to the grille on the Vision Mercedes-Maybach Concept with all the vertical slats running down the big maw. Minimal camouflage is disguising the exterior for the most part, but we imagine Mercedes is hiding any of the gaudier parts of the car itÂ’d like to save for a big reveal. The exhaust outlets sure do look a bit different than the regular GLS, but the outside is generally the same as what we see today. As for the interior, thatÂ’s where most of the magic is expected to happen. A significantly overhauled look is inevitable, with the focus on even more luxurious materials than the most expensive norm-core GLS. A rear seat that's fit for a king or two is likely, along with Maybach-exclusive tech to boot. For now, we canÂ’t see in the heavily camouflaged and taped-off windows, leaving us to wonder about the luxury within. This Mercedes-Maybach is expected to compete with other massively expensive SUVs like the Bentley Bentayga or a fully decked-out Range Rover.  Everything thatÂ’s optional on the GLS should come as standard here, including the trick E-Active Body Control suspension. Look for a reveal coming in the not-so-distant future, as this prototype doesnÂ’t look terribly far from production to us. Featured Gallery Mercedes-Maybach GLS View 12 Photos Spy Photos Maybach Mercedes-Benz SUV Luxury