2003 Mercedes Benz Slk 320 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.

2014 Mercedes SL and SLK add small expansion to Takata airbag recall

Mercedes-Benz is the latest automaker to be affected by Takata's massive airbag recall. The company has announced a voluntary recall campaign on a small number of model-year 2014 SLK- and SL-Class roadsters.
In Mercedes' case, 300 vehicles are affected, 200 of which are in the hands of customers. According to spokesperson Donna Boland, the affected roadsters were built between March and April of this year.
The issue, which is apparently the fault of one of Takata's subcontractors, rests with some improperly installed fasteners, which could keep the airbag from performing the way it's supposed to. According to Boland, Mercedes isn't sure what, if any, injuries the recalled airbags could cause, but simply claims there's an increased risk in these particular vehicles. There's been no reported instances of the faulty airbags deploying on a customer and the original issue was found in a production test.

Will AMG influence MV Agusta's three new 1,000cc bikes?

Freshly injected with capital from Daimler, Italian motorcycle manufacturer MV Agusta is reportedly on the verge of launching a whole array of four-cylinder, one-liter bikes in the near future. We're looking forward to checking them out when they arrive, but we can't help but wonder what influence we might see from the company's new tie-up with AMG. Though MV Agusta's new three-cylinder models have been garnering the lion's share of attention lately, a new range of four-cylinder models has reportedly been confirmed. There's a new F4 superbike on its way, a new Brutale naked street-fighter tipped to follow, and an additional sport-touring variant anticipated to join the lineup as well. A few months ago, MV Agusta released a customer version of its new World Superbike Championship machine, boasting over 200 horsepower in a 386-pound machine. Those specs made us sit up and take notice, especially with AMG logos plastered all over it to mimic the competition version's livery. And that only piqued our interest as to possible future collaborations between the two Daimler properties that could potentially extend far beyond livery. Though AMG has typically dealt with large-displacement engines with eight or twelve cylinders, it has been honing its skills on the smaller four-pot that powers the A45, CLA45 and GLA45 models. And as rival Volkswagen (having scooped up Ducati out from under Benz's nose) has shown with the XL Sport concept, the prospect of slotting the resulting motorcycle engine back into a four-wheeled automobile could prove quite compelling indeed. Related Video: