2015 Volkswagen Passat 2.0l Tdi Sel Premium 4dr Sedan 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.

Porsche engine wizard Wolfgang Hatz resigns

Wolfganag Hatz has resigned from his position as Member of the Porsche Executive Board with responsibility for Research and Development. He has held that title since 2011. Hatz's storied career came to an abrupt end in September when he was suspended pending investigation into the Volkswagen diesel scandal. Before the Porsche job, Hatz was the head of engine and powertrain development for the Volkswagen Group. It has been alleged that he is at the center of the investigation into the company cheating on emissions testing, but so far there has been no direct link made to him, according to Porsche's announcement today. Hatz has worked at a variety of European automakers, including Audi, BMW, Opel, and Fiat. He is considered the father of the BMW S14 engine, which powered the E30 M3, and also developed the Porsche 911 Carrera RS 3.8. He was also very involved in Porsche's motorsports efforts, including the recent return to the prototype class and a short-lived F1 V12 engine project. Ulrich Hackenberg, most recently VW's lead engineer and a board member at Audi, was also suspended at the same time as Hatz and resigned shortly thereafter. It's not clear why Hatz waited so long to do the same, but Porsche claims his resignation was voluntary. Michael Steiner has been named Hatz's replacement as head of Porsche R&D. Steiner has been with Porsche since 2002 and seems like a forward-thinking sort, having headed the innovation and concepts division, lead Panamera development, and, most recently, been in charge of complete vehicle engineering. Prior to his time at Porsche, Steiner held positions at Daimler. The change in leadership is effective immediately. Related Video:

Recharge Wrap-up: Chevy Impala bi-fuel sales; VW e-Up fire

Chevrolet has delivered about 200 units of its bi-fuel Impala so far. The automaker originally planned to begin sales in summer of 2014, but was delayed over a year due to quality concerns. Now, the bi-fuel Impala, which runs on both gasoline and CNG, has begun delivery, mostly to commercial and fleet customers. The car begins at $38,210 (including destination charges), and will be available at 3,200 US dealerships. Production of a 2016 model is underway. Read more at Green Car Reports. The US Department of Energy (DOE) has announced $35 million in funding for hydrogen and fuel cell technology projects. The money will support research and development, manufacturing, and early deployment of the technologies. The DOE also wants to bring together consortia to work together on fuel cell cost, performance, and durability, as well as hydrogen storage research. "As FCEVs become increasingly commercially available, the Energy Department is focused on advancements to enable hydrogen infrastructure including production, delivery, storage, and manufacturing, as well as continuing to reduce fuel cell cost and improve durability," the DOE said in a statement. Read more from the DOE. A Volkswagen e-Up! caught fire after a collision with a train in Norway. The driver, Christopher Traasdahl Saether, was able to jump from the electric Volkswagen before the train hit, and was physically unharmed. It also appears that there were no injuries among the passengers on the train. "It was quite a way to start the day," says Saether. A photographer at the scene reported that the car burst into flames when a salvage crew attempted to remove the wreckage from the railway crossing. See the video and read more (in Norwegian) from Fredriksstad Blad. Featured Gallery 2015 Chevrolet Impala Bi-Fuel View 14 Photos Related Gallery 2014 Volkswagen e-Up!: Quick Spin View 20 Photos News Source: Green Car Reports, DOE, Fredrikstad BladImage Credit: Chevrolet Government/Legal Green Chevrolet Volkswagen Alternative Fuels Safety Electric Natural Gas Vehicles recharge wrapup