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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.

Brabus tunes Mercedes-AMG GT up to 600 horsepower

"You can never have enough power," says Brabus in the statement below, "especially in a sports car." Hence the beast you see here. It's based, as you can plainly see, on the Mercedes-AMG GT. But instead of 469 horsepower in the base model or 503 in S spec, Brabus has boosted it up to 600 metric horsepower. That works out to 591 hp by our standards, a figure backed up by an equally impressive 553 pound-feet of torque – up from 443 or 479. With all that power and twist, the Benz tuner of record says its take on the GT will top out at an autobahn-crunching 201 miles per hour, reaching 62 along the way in 3.6 seconds. Of course, Brabus didn't just tinker with the engine and leave the rest alone. It'll build customer vehicles to individual requirements, but has outfitted this demo vehicle with a full aero kit (in clear carbon fiber), monoblock alloys (20 inches up front, 21 at the back), a retuned suspension dropped by 0.6 inches, and a fully refitted interior. We'll be keeping an eye out for the Brabus GT at the Frankfurt Motor Show this week, but judging from the photos above, it would be hard to miss. Related Video: World premiere at the IAA 2015 BRABUS refines the Mercedes-AMG GT S 441 kW / 600 HP, 750 Nm of torque, a top speed of 325 km/h, carbon components and 21-inch high-tech forged wheels Lending an exclusive car an even more thrilling appearance has been the domain of BRABUS (Brabus-Allee, D-46240 Bottrop, phone + 49 (0) 2041 / 777-0, fax + 49 / (0) 2041 / 777 111, Internet www.brabus.com) for almost four decades. At the IAA 2015 in Frankfurt am Main, the exclusive sports program for the Mercedes-AMG GT and GT S models celebrates its world premiere. With an output increase to 441 kW / 600 HP (591 bhp) and a peak torque of 750 Nm (553 lb-ft), the two-seat car reaches a top speed of 325 km/h (201 mph). From the outside, the sports car with BRABUS design impresses with aerodynamic-enhancement components made from clear-coated carbon, ultra-light BRABUS Monoblock F forged wheels, a sports suspension with a multitude of selectable settings for damping and ride height, and a sports exhaust system made from especially lightweight titanium with electronically controlled sound management. BRABUS fine leather interiors and inlays made from real carbon and precious wood upgrade the cockpit of the two-door car. You can never have enough power, especially in a sports car.

2014 Mercedes-Benz E63 AMG rumbles on stage 4Matic style

Bruce Hornsby and his soothing piano skills helped introduce us to the 2014 Mercedes-Benz E-Class, but the monstrous E63 AMG sedan needed no entrance music as it rumbled on stage. The 550-horsepower (and up) sedan sat proudly alongside the rest of the redesigned E-Class on stage at the Detroit Auto Show, but stood miles apart in intention and execution.
In addition to a choice of sedan and wagon body styles, the E63 AMG will also offer buyers the choice of the standard 550 hp or an upgraded 577-hp S-Model; regardless of output, all 2014 E63 AMG models will come standard with the 4Matic all-wheel-drive system.
We already saw the E63 AMG's aggressive styling last week, but now we have a full assortment of live images for you to enjoy as well as the Mercedes-Benz press release, which is also posted below.