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2016 Mercedes-Benz GLC250 First Drive [w/video]

There's nothing wrong with the Mercedes-Benz GLK other than old age, having first sold here in 2009. But with creased, off-road themed styling, a naturally aspirated V6, and a smallish interior, it's out of step with the company's growing line of sport utility vehicles. Even its name is a harsh-sounding outlier. Enter the 2016 GLC. Mercedes calls this model the second generation of the GLK, but it's closer to a total reboot. The new look follows the smooth design of contemporary Benzes. The spotlight engine is now a spunky turbocharged four cylinder, and yes, the GLC is bigger inside and out. As for the name change, that's part of the latest badge realignment, and the "C" indicates the GLC's position as the crossover counterpart to the C-Class sedan. Now firmly integrated into the Mercedes SUV family, the GLC takes a seat at the table between the entry-level GLA and the larger GLE. The GLC's fresh appearance has all of the tenets of modern Mercedes design. We've come to the Alsace region of France to sample this familiar yet evolved utility vehicle. Driving along route A35, we're immediately struck by the turbo four-cylinder's prowess. It's strong from launches when we mash the gas, returns a subtle but pleasing exhaust note, and it's more than capable of picking off slower moving traffic as we dash through the French countryside. We're driving the European-spec GLC250 model, which has the same 2.0-liter engine Americans will get in the GLC300, though the Euro model has 30 fewer horsepower. The US version will be rated at 241 hp and 273 pound feet of torque, the same output as the C300 sedan. The turbo has big shoes to fill, as it gives up 61 hp to the 302-hp V6 used in the GLK. Mercedes is banking consumers won't miss this raw power, as the GLC's inline-four offers the same amount of torque as the GLK's V6, but much sooner in the rev band. Even in its detuned European state, the I4 demonstrates the kind of urgency that Americans prefer for their grocery-getting people haulers. It's paired with a nine-speed automatic transmission, upgraded from the GLK's seven-speed. There are paddle shifters, though most Americans won't have reason to use them. Sometimes we grab them and lay on the throttle just for fun, and the GLC responds with bursts of speed. Even in its detuned European state, the I4 demonstrates the kind of urgency that Americans prefer for their grocery-getting people haulers.

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.

Production Mercedes GLC Coupe coming in 2016

If the Mercedes-Benz GLC Coupe Concept from this year's Shanghai Motor Show caught your eye, we've got good news. The company confirmed that this model will enter production, and we should see the road-going model early next year, probably at the New York Auto Show. Dr. Gunnar Guthenke, Mercedes' G-Class boss, confirmed this during an event following this week's Frankfurt Motor Show. He's particularly proud of how Mercedes has expanded its crossover and SUV lines, and the addition of the BMW X4-fighting GLC Coupe only proves further commitment to this growth. The numbers don't lie – Mercedes' crossover and SUV sales are up 25 percent this year, compared to 2014 numbers. Even Mercedes' halo of SUVs, the G-Class, is experiencing increased sales. The company set a record for G-Class sales in 2014, and is on track to do it again this year; sales are up roughly 20 percent. For 2016, the G-Wagen gets a number of enhancements, including a 4.0-liter, twin-turbo V8 as the new base engine. Other markets get a new diesel engine for 2016, and more updates are on the way. "Our legend has a bright future," Guthenke said. We'll have a full review of the updated G550 next week, so stay tuned.