1997 Mercedes-benz Sl320 Base Convertible 2-door 3.2l 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.

Maybach and Aston Martin alliance talks fall apart

If you have, like us, been salivating at the notion of a new generation of Maybach and Lagonda ultra-luxury crafts built by Aston Martin, we've got some bad news: According to reports emanating from Germany, talks between AML and Daimler have broken down.
The proposal under negotiation would have seen Daimler outsourcing production of the next family of Maybach models to Aston Martin, which in return would benefit from Mercedes-Benz platforms and engines - not only for its svelte GTs, but also for its own future Lagonda line of limousines and luxury SUVs. That, and a boatload of money - or at least that's what AML was reportedly seeking, an issue that served as the stumbling block over which the deal reportedly collapsed.
That's not to say the two parties couldn't still reach some sort of a compromise, but short of that, Daimler may opt to either shut down Maybach altogether, find another partner, or take another stab at building new models internally.

Recharge Wrap-up: Houston's bus revival, autonomous trucks on the Autobahn

A documentary shows how Houston, Texas significantly improved its outdated bus system. Called High Frequency: Why Houston is Back on the Bus, the short film describes how the city reimagined its bus system to become more efficient, more useful and more popular. Despite some opposition, the change has proven to be effective, with bus ridership up eight percent in three months, and light rail ridership up due to complementary bus routes. See the video above, and read more at CityLab. Automakers sent autonomous semi trucks on the German Autobahn as part of the European Truck Platooning Challenge of 2016. Mercedes-Benz, Volvo and Scania, among other groups, sent platoons of trucks between Stuttgart, Germany, and Rotterdam, Holland. In Mercedes's platoon of three trucks, the lead truck was fitted with lasers and other sensors to guide the convoy down the road. The two following trucks relied on vehicle-to-vehicle communication to trail 50 feet behind the lead, making room for cars to come between them and closing the gaps when able. The close following distance provides fuel economy gains of up to 10 percent in the rearward trucks on account of the reduction in drag. Read more at Hybrid Cars. Renault has reduced NOx emissions in its Euro 6b diesel vehicles in real world driving conditions. By improving its exhaust gas recirculation systems and NOx traps, nitrogen oxide emissions are cut in half on average, under certain driving conditions. The improvements will be included in vehicles leaving the factory beginning in July of 2016. Beginning in October, owners of Renault Euro 6b diesels can have the modifications added to their cars for free. Read more from Renault. Tata Technologies is creating an innovation lab in California to partner with EV technology companies. Having a tech center in California allows Tata to work on technologies that will largely be deployed in the company's main market of Asia. "Today, we are partnering with companies and startups who have aspirations to sell in China, but a lot of what they do is in California," says Samir Yajnik of Tata Technologies. Read more from The Economic Times. BMW's i Ventures is investing in mobility-as-a-service software provider RideCell. RideCell provides technology for services such as carsharing, ridesharing and other transit services. "The convergence of transportation trends in cities is of key importance to BMW," says Ulrich Quay, head of BMW i Ventures.