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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.

'The best Lewis' Hamilton faces resurgent Ferrari in F1

SHANGHAI (Reuters) - Lewis Hamilton has raised his game but whether the Mercedes driver can deny Ferrari a second successive win of the season in China this weekend remains to be seen. On paper, the triple world champion is still the man to beat -- the most successful driver by far in Shanghai with four wins to date. "Lewis is the best Lewis that I've seen in the last four years, both on and off the track," said Mercedes team boss Toto Wolff after the Briton started on pole and finished second to Ferrari's Sebastian Vettel in the Australian season-opener. "He has become a pillar of this team and he proved that in Melbourne." But Vettel is leading the championship, the first time a non-Mercedes driver has done that since he took his fourth title with Red Bull in 2013, and once-dominant Mercedes have a fight on their hands. Mercedes, who have taken both the drivers and constructors' titles for the last three years, have won four of the last five races in China. As Melbourne showed, however, past form may count for little in a season of sweeping rule change. "If you think you are going to cruise to victory in the future, based on a track record of success, you'll be proven wrong very quickly," said Wolff. "Australia was a weekend full of lessons, now we go to China ready and excited for another battle." Ferrari have not started a season with consecutive wins since 2004 at the peak of the Michael Schumacher era, the Italian team taking 15 victories from 18 races that season. Vettel's win in Australia ended a victory drought for Ferrari stretching back to September 2015, and drew rare praise from company chairman Sergio Marchionne, but they must now prove they can be genuine contenders. "You really have to go step by step," said Vettel. "It's good to know that we have a great car but it's just the beginning: new regulations, new generations of cars so there will be a lot of progress." The cars this year are longer and wider, sporting fatter tires and more swept-back bodywork as part of a rules shake-up aimed at making them faster, more spectacular to watch and harder to drive. But overtaking has also become more difficult, with Australia raising concern about the lack of real moves. The long straights and wide sweeps of the Shanghai circuit saw 128 passes last year, more than at any other track, and should provide a more definitive verdict.

Lexus GX and TX, and Volvo EX30 revealed | Autoblog Podcast # 784

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Byron Hurd. They've been driving the Mercedes-Benz GLB Class, as well as the Kia EV6 and EV6 GT. In the news, the new Lexus GX and TX SUVs have been revealed, Ram previewed its compact Rampage truck, Chevy has a Panther-inspired Camaro Collector's Edition, and Volvo unveiled is EX30 city EV. Our hosts take to Reddit for car recommendations, and to the Mailbag for beer tips. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast # 784 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2023 Mercedes-Benz GLB Kia EV6 vs. EV6 GT 2024 Lexus GX revealed 2024 Lexus TX revealed Ram Rampage is a 1500-like unibody truck for Latin America 2024 Chevy Camaro Collector's Edition pays tribute to Panther code name 2025 Volvo EX30 revealed Spend my Money Mailbag Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: