2002 Volkswagen Jetta Gls Sedan 4-door 1.8l on 2040-cars

Auto blog

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.

NA auto output to reach 11-year peak

According to Automotive News, automakers are expected to manufacture 16 million light vehicles in North America in 2013. That's up 500,000 units from last year and marks the largest number since 2002. The prediction comes courtesy of LMC Automotive and IHS Automotive, which point to the improving US economy as a bellwether for total production. LMC Automotive says North America will produce 16 million vehicles while IHS has a slightly more optimistic forecast of 16.1 million units. A total of seven automakers are slated to increase production on the continent this year. Nissan is set to see the largest jump at 20 percent over last year.
Volkswagen, meanwhile, is one of the only manufacturers predicted to scale back production. Analysts expect the German company's output to fall by 23 percent to 170,000 units, thanks in part to slow demand for the Volkswagen Passat and Jetta.

VW apprentices prep Golf GTI Dark Shine, Variant Biturbo for Worthersee

Volkswagen not only cooks up some pretty tempting concepts of its own for the GTI-Treffen at Worthersee every year (and encourages its sister brands to do the same), but also gives its apprentices the opportunity to do it. And here's what they came up with this year. Called the GTI Dark Shine edition, the show car features an upgraded 2.0-liter turbo four, pumping out 389 horsepower and 359 pound-feet of torque through its dual-clutch transmission. But that's not all. As you can see, it also has a striking two-tone livery of metallic gray and yellow pearl, along with a stainless steel exhaust, carbon air box, an upgraded aero kit, a 3,500-watt audio system with eight speakers and a thoroughly reworked interior done up to match the bodywork in black Alcantara and carbon leather with yellow trim. The team of 13 apprentices built the show car from a body-in-white over the course of nine months. It follows in a long line of GTI concepts done each year by VW apprentices that stretches back to 2008. This year, however, another team of 14 interns at the plant in Zwickau, Germany, worked up a blue Golf Variant wagon called the Biturbo Edition with the twin-turbo diesel from the Passat good for 236 hp and 368 lb-ft. Another team in the Czech Republic was responsible for the Fabia FUNstar pickup concept. And of course the automakers themselves showcased the radical Golf GTE Sport, GTI Clubsport, Skoda Fabia Combi R5 and Audi TT Clubsport. The lake is calling ... world premiere: Volkswagen apprentices present their Golf GTI Dark Shine at Worthersee event - Other show car premieres: Golf Variant Biturbo Edition (Zwickau) and SKODA FUNstar (Mlada Boleslav) They have followed the call of the lake: 13 Wolfsburg apprentices from Volkswagen and group company Sitech Sitztechnik have traveled to the 34th Worthersee GTI meeting today to present their 395 PS (290 kW) Golf GTI Dark Shine to the public for the first time. Their sporty two-door Golf features a two-tone color scheme. The front is painted in dark Daytona Grey Metallic and the rear in unique R-yellow pearl effect – giving rise to the name "Dark Shine". The Golf GTI Dark Shine is impressive confirmation of the high-quality practically oriented training provided by Volkswagen.