2010 Mercedes Bens Gl450 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.

Brabus luxes up new Mercedes V-Class

Looking for a luxury coach to get you around town in style and comfort, but don't need anything as big as a Sprinter? Mercedes will gladly point you towards the smaller V-Class, trading Stateside as the Metris. And now Brabus has released a full array of customization options for the van as well. The list of modifications available from the venerable Benz tuner include an aero kit to give the van a sleeker look while reducing front-end lift, a full complement of 18- and 19-inch wheel options, a retuned suspension, engine enhancements, exhaust upgrade, and a fully refitted interior. The first-class cabin on this show vehicle has been reupholstered in leather and Alcantara, offset by wood and carbon-fiber trim, and a complete entertainment system. It includes a pair of 15.6-inch LCD screens that drop from the headliner and WiFi. Finally, there's a touchpad integrated into the interior C-pillars to operate the system as well as the lamps, heated seats, power windows and curtains, and the sliding doors. Accommodation is clearly the emphasis here. But Brabus being Brabus, it has also optimized the BlueTec four-cylinder turbo diesel engine to produce 44 more horsepower and 52 pound-feet more torque. With output now up to 232 hp and 376 lb-ft, the van will reach 62 miles per hour from a standstill in 8.8 seconds and top out at 130 mph – and look that much slicker in the process. Related Video: Engine tuning, exclusive looks and entertainment: BRABUS Exclusive Program for the new Mercedes V-Class The new Mercedes V-Class as a sporty-elegant jack-of-all-trades: in a world premiere, BRABUS (Brabus-Allee, D-46240 Bottrop, phone + 49 / (0) 2041 / 777-0, fax + 49 / (0) 2041 / 777 111, internet www.brabus.com) presents the exclusive refinement program for the new Mercedes V-Class. BRABUS upgrades the people mover with powerful engine tuning, an exclusive appearance package, tailor-made wheels and an individual entertainment concept. A sporty-elegant design is the trademark of the BRABUS aerodynamic-enhancement kit for the new Mercedes V-Class and Vito. All components are manufactured from PUR in OEM quality, giving them a precise fit and making them easy to paint. To give the vehicle an even more distinctive face, the BRABUS designers have developed attachments for the side air intakes, which can be complemented with auxiliary LED side markers, and a front spoiler that attaches to the lower section of the bumper.

Weekly Recap: Toyota propels hydrogen fuel cells

Toyota is serious about hydrogen fuel cells, and it wants the auto industry to follow suit. The Japanese automaker said this week it's releasing 5,680 fuel cell patents from around the world, including technologies used on its upcoming sedan, the 2016 Mirai. The move is unusual, but not unprecedented, as Tesla similarly released its electric vehicle patents last year. The idea for Tesla, and now for Toyota, is to spur development of alternative propulsion. "By eliminating traditional corporate boundaries, we can speed the development of new technologies and move into the future of mobility more quickly, effectively and economically," said Bob Carter, Toyota Motor Sales senior vice president of automotive operations, in a statement. Toyota's fuel cell patents will be free to use through 2020, though patents related to producing and selling hydrogen will remain open forever. Toyota said it would like companies that use its patents to share their own hydrogen patents, but won't require it. "What Toyota's doing is really a logical move, and really a good move for the industry," Devin Lindsay, principal powertrain analyst with IHS Automotive, told Autoblog. The announcement was made at the Consumer Electronics Show in Las Vegas. It comes as Toyota prepares to launch the hydrogen-powered Mirai in a limited number late this year in California. The launch will be extended to the Northeastern United States next year. Toyota also has announced plans to support networks of fueling stations in each region to try to smooth consumer adoption. The Mirai has a 300-mile range on a tank of hydrogen, and it takes about five minutes to refill. Fuel cells have been receiving increased attention recently, and Audi and Volkswagen debuted hydrogen-powered cars at the 2014 Los Angeles Auto Show. Honda, another proponent of the technology, also showed its updated FCV concept in November in Japan. The company, however, has delayed its fuel cell sedan a year until 2016. Like Toyota, Honda says its hydrogen-powered car will have a range of 300 miles or more. Meanwhile, Hyundai currently offers leases for fuel-cell powered Tucsons, which have a 265-mile range, in Southern California. Despite the optimism some automakers have for fuel cells, the technology still faces barriers. A lack of filling stations has long held it back, and many consumers are not familiar with the potential benefits.