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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.

Mercedes updates G-Class including new 4.0-liter twin-turbo V8 [UPDATE]

UPDATE: Information on US availability (including corrected output figures) added to the revised text below. Mercedes has been building (or having Magna Steyr build) the G-Class for an unfathomable 36 years now. Needless to say, the legendary off-roader wouldn't still be around if not for the occasional update here and there, and that's just what the German automaker announced today. The list of enhancements to the iconic Gelandewagen is almost as long as its lifespan, but the most salient point here is the introduction of a new engine. The revised G550 introduces a new 4.0-liter twin-turbo V8, based on the high-performance engine in the Mercedes-AMG GT and C63, but retuned: in this application, it produces 416 horsepower and 450 pound-feet of torque (compared to 453 hp and 440 lb-ft in the GT or 503 and 480 in the GT S). We'd expect that engine to gradually make its way into other models as well. Though the G500 is the only one with a completely new unit, the other engines in the lineup have also been updated. The G350d bumps from 211 hp and 398 lb-ft to 245 hp and 442 lb-ft, the AMG G63 jumps from 536 hp to 563 (torque remains constant at 560 lb-ft), and the top-of-the-line, twelve-cylinder G65 (which we'll be getting Stateside for the first time) now produces 621 hp and a massive 738 lb-ft. Those figures result in a 0-62 time of 8.9 seconds for the diesel, 5.9 for the G500, 5.4 for the G63 and 5.3 for the G65 – which are altogether might impressive for a vehicle as big and boxy as the G-Wagen. All but the G65 now feature stop/start systems to help reduce fuel consumption too. Benz also revised the suspension tuning (while offering optional active dampers) and reprogrammed the ESP, ASR and ABS systems. Inside there's a new instrument cluster, the non-AMG models get new bumpers and flared wheel arches, and there's a bright new array of colors available for the AMG models, which can also be ordered in a new special Edition 463 featuring unique trim inside and out. The revised models will be arriving at US dealers in November, however the diesel model will not be making the transatlantic journey to our shores. The data in the press release below (as well as the images in the gallery above) pertain to the European models, with the correct output figures for the US models amended in the text above. Related Video: Mercedes-Benz G-Class Makeover for an off-road icon Stuttgart.

Lewis Hamilton signs another three years with Mercedes

Dominant. That's really the only term we could use to describe the marriage of Lewis Hamilton and the Mercedes F1 team. And now they've signed a new contract. The subject of prolonged speculation, the reigning world champion and his team have announced a new three-year deal that will see Hamilton driving a Silver Arrow at least through the end of 2018. That's good news for Hamilton, who has only ever driven Mercedes-powered cars in Formula One, and for Mercedes, which has secured its star driver for years to come. Although details of the deal (as usual) were not disclosed, the BBC reports that it could be worth as much as $40 million each year. Hamilton's base salary is said to come in at $31 million per season, with extensive bonuses for winning races and championships – something at which Lewis and Benz have proven particularly adept. Racing fans will be well schooled in the trajectory of Hamilton's meteoric rise. He climbed the formula racing ladder with support from Mercedes and McLaren, winning the Formula 3 Euro Series and GP2 championships before hitting the F1 grid for McLaren in 2007 – and quite nearly locking the championship in his first season. He won his first F1 title in 2008, then struggled with the Woking team in subsequent seasons but kept winning races, switching to Mercedes in 2013 after Michael Schumacher re-retired. He won his second championship the following season on the back of 11 grand prix wins last year, and currently leads the standings ahead of his teammate Nico Rosberg. "Mercedes is my home and I couldn't be happier to be staying here another three years," said Hamilton. "The Mercedes car I am driving right now is the best I have ever had in my career."