1989 Mercedes 300te Wagon 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.

Rosberg survives the Mexican mess | 2016 Mexican Grand Prix recap

Roughly ten messy laps defined the Mexican Grand Prix – five laps at the start and five at the end. Those laps included a couple of actual wrecks and a few more near wrecks that turned the entire day into chaos. To have any chance of winning the 2016 Driver's Championship, Lewis Hamilton needed to get his Mercedes-AMG Petronas across the finish line ahead of teammate Nico Rosberg. Once again we got a weekend full of vintage Hamilton, the Brit dominating the from Friday to Sunday, except for the first corner of the first lap. Pole-sitter Hamilton reached Turn 1 clearly in front of the field. But he couldn't make the corner and stay on track, so he zipped into the runoff area and over the grass, rejoining at Turn 3 still ahead of the field. The stewards didn't penalize Hamilton, one commentator's explanation being that Hamilton "was not battling another car." The non-action left car #44 to enjoy a lights-to-flag win. At that very same corner, Rosberg also availed himself of the runoff area. His infraction seemed destined to incur a penalty until replays showed that Max Verstappen in the Red Bull slid wide and bumped Rosberg, causing the German to go off track. No penalties were handed out there, either. Verstappen would return to hound Rosberg later in the race when angling for second place. Verstappen took a stab through Turn 4 on Lap 50 of the 71-lap race, but ran off the track and lost touch with the Mercedes by Lap 55. Ferrari got half of its strategy right in Mexico, putting Sebastian Vettel hard on the charge in the final stint. The German got within DRS range of Verstappen on Lap 67, with Red Bull's Daniel Ricciardo a little more than a second behind Vettel. On Lap 68, Verstappen pulled the same move as Hamilton at the beginning of the race: the Dutchman ran wide through Turn 1, zoomed over the grass and rejoined the track at Turn 3, staying ahead of Vettel the whole time. With three laps remaining, the stewards chose to investigate after the race. In spite of Verstappen's own team telling he probably needed to cede position to Vettel, Verstappen stayed in front and slowed just enough to put Vettel under threat from Ricciardo. On Lap 70 Ricciardo had closed up to Vettel's gearbox. Headed for Turn 4, Vettel swung outside to take the corner. When Ricciardo moved inside to pass, Vettel moved inside to block the Aussie while both cars were in the braking zone. The Ferrari made light contact with the Red Bull, but Vettel held his position through Turn 5.

2015 Italian Grand Prix is smoke, mirrors, stalls, and stewards

For the first day-and-a-half of the Italian Formula One Grand Prix weekend, everything went to blueprint: Mercedes in front, Ferrari lurking, everyone else scrambling in their usual orders behind. Then qualifying came, and someone stirred the pot. About the only thing we expected was for Lewis Hamilton to put his Mercedes-AMG Petronas on pole position, the 11th time he's done it this year. He did it with a brand-new specification engine, one that represents not only an evolution in components, but also in power unit philosophy. Kimi Raikkonen lines up in second. It's been a long time since we read those words; the Iceman hasn't been on the first row since the 2013 Chinese Grand Prix, when he put his Lotus second on the grid behind... Lewis Hamilton. Raikkonen lined up just ahead of a Ferrari at that China race, then driven by Fernando Alonso. In Italy this weekend, he lined up in front of the Ferrari driven by his teammate, Sebastian Vettel, who qualified third. Both Ferraris benefitted from an upgraded power unit, ending a front-row drought for the scuderia that goes all the way back to Monaco in 2009 Germany in 2012. Nico Rosberg has a lot of work to do from fourth in the second Mercedes-AMG Petronas. Mercedes discovered a problem with Rosberg's engine but couldn't figure out the cause, so he reverted to the previous-spec engine he used in Belgium, one that's six races old. The lack of power hurt. Williams teammates Felipe Massa and Valtteri Bottas took fifth and sixth, with Massa seemingly given a team-ordered helping hand. Williams told Bottas to tow Massa down the front straight, giving Massa a blistering time in the first sector. Then Bottas did it again, ensuring he would line up behind Massa. The first Sahara Force India of Sergio Perez nabbed seventh, three places ahead of teammate Nico Hulkenberg in tenth, with Romain Grosjean in the Lotus behind Perez in eighth. Marcus Ericsson in the Sauber qualified ninth, but some clumsy driving saw him impede Hulkenberg twice. The stewards penalized Ericsson with a three-place grid penalty and two points on his superlicense, so Hulkenberg inherited ninth and Pastor Maldonado in the second Lotus inherited tenth. We hardly saw Hamilton during the race, because he led from the start, worked up a larger gap to second place on every lap, and didn't give up the lead for the whole event.