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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.

Five reasons to love, or hate, the culture of German cars

A few months back, we took a 500-foot view of the culture of American cars, dissecting prides and prejudices on our way to the conclusion that automotive allegiances can be simultaneously embraced and derided. We had so much fun with the narrative that we decided to do it again, this time taking a look at Germany and its world-renowned lineup of automakers, including the likes of Audi, BMW, Mercedes-Benz, Porsche and Volkswagen, among others. Join us below as we discuss the points and counterpoints that make or have made the German auto industry what it is today. And remember, Germany did pretty much invent the automobile, after all... The V12 Engine If America is known for the proliferation of the V8 engine, an argument could be made that Germany owns the V12. Yes, of course, other companies have created V12 engines – Ferrari, Jaguar and Lamborghini immediately come to mind – but the big 12-cylinder powerplants from BMW and Mercedes-Benz, in particular, have proven to be some of the most effortless, luxurious and downright over-built engines the world has ever seen. These days, having 12 cylinders is more a case of wretched excess than ever before, and yet, you can still stroll into your local BMW or Mercedes dealership and get a brand-new 760i, S600 or even an over-the-top G65 AMG, efficiency be damned. Best of all, since the majority of these German powerhouses depreciate as fast as an anchor sinks, nearly any auto enthusiast who dreams of a dozen cylinders can satisfy their carnal desires. Current Star: 2016 Mercedes-Maybach S600 View 28 Photos Diesel Engines Remember how we talked about those glorious V12 engines? Well, you can even get one from Audi that runs on diesel. If your compression-ignition fantasies err more on the side of fuel savings, that's no problem, either. Audi, BMW, Mercedes and Volkswagen have got you covered, with engines starting as small as 800 cubic centimeters (Smart Fortwo). If you want something a little more practical, it's hard to argue with a VW Golf TDI, which will provide plenty of space for you and three of your best friends, plus a fair bit of luggage, all while returning 50-ish miles per gallon. For the purposes of this discussion, we'd rather focus on the asinine levels of torque provided by Germany's high-end diesel engines than the lower-end fuel sippers.

Next Aston Vantage will be the only way to get an AMG V8 with a stick

With only a few exceptions, most of them factory customs, AMG hasn't built cars with manual transmissions. It just isn't the way things are done in Affalterbach. But now that Mercedes's in-house speed shop will be supplying engines to Aston Martin, the world will be treated to cars with three pedals and overengineered German V8s wrapped in a pretty British package. We're into it. The news comes from Car and Driver, which spoke to Aston Martin CEO Andy Palmer about the new Vantage among other things. Palmer confirms to C/D that the Vantage will continue to offer manual and automatic transmissions when the next-gen car arrives featuring the AMG 4.0-liter twin-turbo V8. In its most potent form, the eight-cylinder makes 503 horsepower and 479 lb-ft of torque in the AMG GT S. Figure on a little more from the Aston-ized version, just for fun. The current V8 Vantage GT makes 430 hp and 361 lb-ft from its naturally aspirated 4.7-liter. While some may lament the new engine's forced induction, that added power and the thoroughly modern behavior of the AMG engine should be welcome. While the AMG V8 is currently only planned to go into Aston's entry-level car, C/D does mention a possibility of it (and perhaps its three-pedal transmission) making its way into other cars as an economy option for certain markets. If a V8 DB11 were to be offered, don't expect it to show up here, though. There's also no word on who will supply the manual for the AMG-Aston mashup, but it likely will be a transaxle like the current Vantage. Ex-factory manual AMGs aren't totally unprecedented. Pagani has built some three-pedal cars with its massaged AMG V12s. Compared to those, however, these manual Vantages can be considered mass-production cars. And really, any increase in the number of sticks mated to AMG engines can only be a good thing. Related Video: News Source: Car and Driver Aston Martin Mercedes-Benz Coupe Performance mercedes-amg confirmed aston martin v8 vantage aston martin vantage