1985 Mercedes-benz 500sl 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.

Watch Evo pick its 2015 Car of the Year in this epic video

With just a few days left in 2015, it's the perfect time to check out Evo's annual Car of the Year test to determine the greatest performance vehicle of the last 12 months. The writers' picks for the 11 finalists spanned a breadth of engaging models and included: Peugeot 208 GTi by Peugeot Sport, Lamborghini Aventador SV, Seat Leon Cupra Sub8, McLaren 675LT, Porsche 991 GT3 RS, Porsche Cayman GT4, Honda Civic Type R, Ferrari 488 GTB, Chevrolet Camaro Z/28, Lotus Evora 400, and Mercedes-AMG GT S. For the venue to test the mettle of these performance machines, Evo stuck close to home this year and visited the twisting roads at the beautiful north coast of Scotland. Racing brothers Marino and Dario Franchitti also came along for the ride to provide two more voices in the competitive challenge to determine a winner. Evo's video explains why each model deserves to be among such rarified company but doesn't gloss over their faults either. There can be only one winner, though. We don't want to spoil it, so check out the clip for magnificent views of these performance machines through the Scottish countryside.

Mercedes-Benz V-ision e Concept ups the plug-in hybrid van game

The various V-Class vehicles from Mercedes-Benz don't get a lot of press around here, but when the German automaker brings something as unusual as the Concept V-ision E (yes, there's a dash in the name) to the Geneva Motor Show, we're happy to make an exception. The standard powertrain V-Class was first unveiled in Geneva last year and it returns in 2015 as a decidedly Daimleresque take on a plug-in hybrid van with a whole heap of cool new technology under the hood. C'mon, you know you want a luxury plug-in hybrid van. Well, if you think you don't want a van like that, listen to the specs and maybe you'll change your mind. It's got an all-electric range of up to 31 miles (if you're going no faster than 50 mile per hour), roughly 78 miles per gallon equivalent (based on the stated fuel economy of 3.0 liters burned per 100 kilometers) and a top speed of 128 mph. That should be plenty to get the basketball team to the tournament on time and in style. The powertrain has a total system output of 333 horsepower thanks to a four-cylinder engine and a 90-kW electric motor. If those numbers sound vaguely familiar, that's because Mercedes said it's "the same advanced drive system" as what's found in the Mercedes-Benz C 350 e, even though some of the performance figures differ. Stylistically, Mercedes has pulled no punches, adding two sun roofs, a real wood floor, nappa leather and executive seats along with something shiny and silver called "designo titanium alubeam" paint. In short, this is an everything-and-the-kitchen-sink approach to PHEV design, and we like it. It's just a concept, though, so don't go asking to buy one just yet. Instead take a better look in the gallery above and dream of going to the auto show prom in a van like this. V-Class concept car with a PLUG-IN HYBRID drive: Mercedes-Benz Concept V-ision e - Higher Performance at Lower CO2 Emissions Stuttgart, Mar 03, 2015 At the Geneva International Motor Show the Concept V-ision e from Mercedes-Benz presents a preview of the great variety of development potential offered by the V-Class. The concept vehicle combines environmentally friendly performance with the lightness of modern luxury. The most advanced PLUG-IN HYBRID technology available ensures extremely powerful propulsion in the model, as the highly efficient drive-system duo consisting of a gasoline engine and an electric motor delivers total system output of 245 kW (333 hp) and system torque of up to 600 Nm.