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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.

Recharge Wrap-up: Innova EV Car Share, Mercedes to use CO2 A/C

Innova UEV will launch its carsharing program at the Association for the Advancement of Sustainability in Higher Education 2015 Conference & Expo. Called Innova EV Car Share, the program is designed for college campuses, and uses the Innova Dash neighborhood electric vehicle and solar charging stations. "The Innova UEV team is excited to introduce this innovative sustainability program to universities across the country as a way to reduce CO2 output as well as decrease congestion," says Innova UEV Founder and CEO Roman Kuropas. "Visionary schools that make this level of commitment to the environment are sure to add to their sustainability prestige as leaders in higher education." Read more in the press release from Innova UEV. Microsoft and ABB are launching a new EV fast-charging services platform. ABB chargers will connect to the Microsoft Azure cloud, allowing for smarter charging as infrastructure expands. "Platform performance and stability are critical differentiators for the successful operation of a modern, data-dependent EV charging station," says ABB's Pekka Tiitinen. "By partnering with Microsoft, ABB will be able to offer best-in-class operations as well as innovative advanced services - what we call the Internet of Things, Services and People." Perhaps we'll hear more specific details following the platform's launch at eCarTec in Germany. Read more from Microsoft. Honda is testing solar-powered EV charging in the Marshall Islands. The AC charging stations, called the Honda Power Chargers, will help power a fleet of Fit EVs on the remote islands as part of a pilot test. The Marshall Islands must import most of their energy supplies, so solar-powered mobility would help provide some self-sufficiency and cost savings. Honda, the Marshall Islands government, and the Japanese Ministry of Economy, Trade and Industry will use the experiment to determine if it would be worthwhile to expand the solar-powered charging infrastructure. Read more at Green Car Reports. Mercedes-Benz will use CO2 air conditioning to help meet the EU's 2017 environmental requirements. The European offerings of the S-Class and E-Class will be the first to use a CO2-based air conditioning system. The use of CO2 requires a redesign of much of the system, as it requires a much higher pressure than other refrigerants. The automaker will use the HFO-1234yf refrigerant in its other vehicles.

Mansory G63 AMG Sahara Edition substitutes performance for taste

We aren't sure if it's an unwritten rule or not, but it seems like European tuners are wholly incapable of building cars whose aesthetics don't offend people blessed with the gift of sight. Take Mansory, for example. The Swiss tuner has turned its hand to the Mercedes-Benz G-Class, a vehicle that on it's own is not exactly a visual stunner. Functional sure, but not exactly beautiful. But with Mansory wielding the design pen, the result is, well, yeah. It's not great. This is the Mansory G63 AMG Sahara Edition, and surprisingly, its camouflaged paint scheme is one of its least obnoxious qualities. But its grille, headlights, hood scoop, roof-mounted lights and rear spoiler just don't do this Mercedes any favors. And for some reason, the tuning firm has decided to put two different styles of 22-inch alloys. The driver's side isn't horrible, although we can't say the same about passenger-side hoops. The interior treatment is nothing compared to the cabin, though. Falcons. There are falcons in the headrests. No, we don't know why either. The avian theme isn't limited to the headrests, though, as Mansory has added wings to the seats, dash and door panels, all the while continuing on with camouflage color scheme on certain interior surfaces. Of course, if you can live with the design decisions, you'll be getting a ludicrously potent G-Wagen. Mansory has boosted the 5.5-liter, biturbocharged V8 to 828 horsepower while it's actually been limited to 737 pound-feet of torque. We aren't sure what the addition of 292 hp and 177 lb-ft of torque does to the G63's run to 60, although we're betting the Mansory version is a lot quick than the 5.3-second stock time. Check out our live gallery of the G63 AMG Sahara Edition, from the floor of the 2015 Geneva Motor Show. Related Video: