2001 Mercedes-benz Clk-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.

Geely chairman is now the single biggest investor in Daimler

Li Shufu, the chairman and main owner of Chinese carmaker Geely, has built a stake of 9.69 percent in Daimler AG, the German carmaker said in a regulatory filing on Friday. The stake, worth nearly $9 billion at the current valuation for Daimler shares, makes Li the biggest single shareholder in the maker of Mercedes-Benz cars, trucks and vans headquartered in the German city of Stuttgart. A Daimler spokesman called the stake purchase a private investment by Li. "We are delighted, with Li Shufu, to have won over another long-term investor who is convinced of Daimler's innovative prowess, strategy and future potential," the spokesman said in response to a request for comment. "Daimler knows and respects Li Shufu as a Chinese entrepreneur of particular competence and forward thinking." Li's stake purchase makes him the top shareholder in Daimler ahead of the Kuwait Investment Authority, which owned 6.8 percent as of Sept. 30, according to Thomson Reuters data. Earlier this month, the German newspaper Bild am Sonntag reported that the Chinese industry giant was seeking to become Daimler's biggest shareholder, likely exceeding the 6.8-percent stake of the Kuwait Investment Authority. The paper said Daimler had reportedly turned down Geely's $4.5 billion offer for a 5-percent stake via a discounted share placement, saying that Geely could buy shares in the open market. Institutional investors currently own 70.7 percent of Daimler, and the company already has strong ties to Chinese automakers BAIC and BYD. Bild am Sonntag said the move was intended as a strategic alliance against Apple, Google and Amazon on autonomous and connected cars. And Reuters reported that Daimler wants to have bespoke "robo taxis" on the road quicker than Google's Waymo, and views Geely as a strong partner for that. Geely conversely is interested in Daimler's electric car battery technology, and sources quoted by the German paper say there are plans to establish joint electric car manufacturing in Wuhan, China, to meet China's smog-reducing quotas. Geely is developing the Lynk & Co. brand of electric and hybrid cars. Geely owns Volvo, which has enjoyed a renaissance under the arrangement, as well as the maker of London's black cabs. In December, it bought a stake in AB Volvo, the maker of Volvo trucks.

2016 Mercedes-Maybach S600 First Drive

Imagine the audacity: during the salad days of the early 2000s, the company that invented the automobile – already synonymous with class-leading luxury – sought to further expand its portfolio by crashing the ultraluxury party. Going up against the likes of Rolls-Royce and Bentley, Mercedes-Benz traded its unmistakable Three-Pointed Star for a Mighty Mouse-like logo, exhuming a stately, long-dead German marque originally founded in 1909. The long-wheelbase Maybach 62 listed at an epic $360,000, while later spinoffs included curiosities like the nearly $700,000 Zeppelin, and a roofless, seven-figure limousine dubbed Laundaulet. By the time the financial bubble finally burst in 2008, the brand's fate was all but sealed, with US sales dropping into the double digits. It limped along another four years, but when the nameplate finally went kerplunk, it left behind it a trail of disappointed movers, shakers, moguls and rappers. The perfect postmodern metaphor for the brand's funeral pyre? Kanye West and Jay-Z's Otis music video, in which a perfectly fine Maybach is chopped and deconstructed, flames spewing out the tailpipes as it powerslides through an empty parking lot. Meet The (Sorta) New Boss Rising from the ashes of hubris is the 2016 Mercedes-Maybach S600, a recalibrated stab at high-end luxury with a startlingly similar, yet different, approach to its forbear. Like the last go, the new sled features a significantly longer wheelbase, which stretches 8.1 inches over the standard S600. Additional sound damping helps it claim the quietest rear cabin in all of production automobiledom, and posher trim bits include a rim of wood surrounding the reclining rear seats. Among the livery-focused special features is a rearview mirror-mounted microphone to amplify the driver's voice, an available rear fridge, and an executive seat package with folding tray tables. The super high-end hallmarks are there – a twin-turbo V12 dispatching sub-5 second 0 to 60 times, a stunning 24 speaker Burmester sound system, double-M branded silver plate champagne flutes, et al. – but the hyperinflated price tag is not. Starting at $189,350, roughly half the cost of the old flagship, the new Maybach isn't even the most expensive Mercedes-Benz you can buy. That distinction goes to the S65 AMG Coupe, which empties your coffers to the tune of $230,900.