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Discussion Topics for Autoblog Podcast Episode #366
2015 Lincoln Navigator

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.

Here’s how 20 popular EVs fared in cold-weather testing in Norway

Electric vehicles are known to suffer diminished performance in cold weather, but some do a better job than others hanging onto their range capacity while cabin heaters and frigid outdoor temperatures sap power from their batteries. Recently, the Norwegian Automobile Federation put the 20 of the best-selling battery-electric vehicles in the country to the test, to see not only how winter weather affected their range but also their charging times. The major findings: On average, electric vehicles lost 18.5% of their official driving range as determined by the European WLTP cycle. Electric vehicles also charge more slowly in cold temperatures. And interestingly, the researchers learned that EVs don’t simply shut down when they lose power but instead deliver a series of warnings to the driver, with driving comfort and speed levels maintained until the very last few miles. Because itÂ’s Norway, the worldÂ’s top market for electric and plug-in hybrid vehicles by market share, the test included many EVs that arenÂ’t available here in the U.S. But there are many familiar faces, among them the Nissan Leaf, Tesla Models S, 3 and X, Hyundai Kona (known here as the Kona Electric) and Ioniq, and Audi E-Tron. In terms of range, the top-performing EV was the Hyundai Kona, which lost only 9% of its official range, which the WTLP rated at 449 kilometers, or 279 miles, compared to its EPA-rated range of 258 miles on a full charge. It delivered 405 km, just enough to nudge it ahead of the Tesla Model 3, which returned 404 km. Other top performers included the Audi E-Tron, in both its 50 Quattro (13% lower range) and higher-powered 55 Quattro (14% lower) guises; the Hyundai Ioniq (10% lower); and Volkswagen e-Golf (11% lower). At 610 km (379 miles) the Tesla Model S has the longest WLTP range of all models tested and went the furthest, but still lost 23% of its range, though it also encountered energy-sapping heavy snow at the end of its test, when many cars had dropped out. The Model 3 lost 28% of its range. The worst performer? That goes to the Opel Ampera-e, better known stateside as the Chevrolet Bolt. It traveled 297 km (about 184 miles) in the test, which was nearly 30% lower than its stated WLTP range. We should also note that Opel, now owned by Groupe PSA, is phasing the car out in Europe and that Chevy recently upgraded the Bolt here in the U.S.