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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.

Mercedes releases first shot of AMG GT3

A week ago we got a rendering of the upcoming race-only Mercedes-AMG GT3, to be shown to the public for the first time at the Geneva Motor Show. Now, Mercedes has let loose a photo of the front of the car and it looks very serious, a trait undoubtedly helped by its link to the past: that grille motif goes straight back to the W154 Silver Arrows pre-war racer driven to the 1938 European Championship by Rudolf Caracciola. Those angry, angled and sunken headlights don't hurt, either. It will be ready in time for the 2016 GT3 season and come loaded with expectations, since the SLS AMG GT3 it replaces has been a victory machine around the world. Unlike that SLS, though, this car will spawn a hardcore road-going version - not to be called GT3 - with less weight and more power, armed to do battle with the coupe that comes first to mind when that alphanumeric is mentioned. With the way the AMG GT S already gobbles up circuits, we're prepared to be impressed by what comes next. Related Video: Featured Gallery Mercedes-AMG GT3: teasers News Source: Mercedes-AMG Motorsports Geneva Motor Show Mercedes-Benz Coupe Racing Vehicles mercedes-amg 2015 Geneva Motor Show gt3 fia gt3 mercedes-amg gt3

Mercedes Concept IAA shows its mighty morphing aero aids

Modern supercars are utilizing more active aerodynamic elements that constantly adjust, to make them some of the fastest things on the road. The Mercedes-Benz Concept Intelligent Aerodynamic Automobile is using them too, but the know-how is applied here for ultimate efficiency rather than turning better lap times. In the standard design mode, the four-door luxury coupe looks like a CLS from the near future with styling that's mixed with a little of the F 015 concept. However at the press of a button or upon hitting about 50 miles per hour, the IAA transforms into aero mode to have an insanely low drag coefficent of just 0.19. To achieve the ultra-efficient shape, the rear of the concept stretches over 15 inches to guide air down the tail. Flaps in the bumpers also extend outward, and the wheels adjust to improve the flow around the sides. To trim things out underneath, a portion inside the front bumper moves, as well. Inside, passengers sit in organically shaped leather seats, but occupants have to look at a vast array of purple and blue LED accent lights. The big panoramic roof is a nice touch, though. It would be interesting to watch water tumble over this slippery shape when driving in the rain. To maximize efficiency, Mercedes powers the IAA with a plug-in hybrid that's hooked up to a gasoline engine. The result is 275 horsepower and an electronically limited top speed of 155 miles per hour. On the European testing cycle, the company figures the concept could cover 41 miles solely on electric power in aero mode. Showing the gains of the swoopy transformation, that figure falls to 38.5 miles in design mode.