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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.

VW V-Charge is clever automated EV parking, charging tech

Automated parking is another niche that Volkswagen wants to rule, so the German carmaker has teamed up with five technology partners to develop its V-Charge system. In short, V-Charge allows an owner to use a smartphone app to send his car to find a parking space and return when requested. If it's an electric car, it will search for an open inductive charging spot, and when fully charged it won't squat over the charger, but will move to find a conventional parking spot. Valet Charge uses four wide-angle cameras, three stereo cameras, 12 ultrasonic sensors, and car-to-infrastructure protocols to avoid obstacles as it finds its way around, including areas like parking garages where GPS won't work. VW says it's been careful to use off-the-shelf sensors and technologies that are already installed in current cars, since it has an eye on near-term implementation of V-Charge. It's impossible to know what "near-term" means, but the sooner we can avoid the valet and trust our car to fetch a spot and come back to us like a faithful pet, the better. The video above shows it at work, the press release below has all the details. 'V-Charge': Volkswagen pushes development of automated parking and charging of electric vehicles - Parking spaces driven to fully automatically - Electric vehicles charged automatically - V-Charge places only minor demands on car park infrastructure - Intelligent form of valet parking Volkswagen aspires to holding the leading position in the field of automated parking. A look into the near future of automated parking is given by 'V-Charge', an EU research project, in which six national and international partners are jointly developing new technologies. Its focus is on automating the search for a parking space and on the charging of electric vehicles. The best part about it is that the vehicle not only automatically looks for an empty parking space, but that it finds an empty space with charging infrastructure and inductively charges its battery. Once the charging process is finished, it automatically frees up the charging bay for another electric vehicle and looks for a conventional parking space. 'V-Charge' stands for Valet Charge and is pointing the way to the future of automated parking. Wolfsburg, 14 July 2015 - In the USA especially, convenient valet parking is a big hit: you pull up in your car right outside your destination, valet service personnel park it for you and have it brought around again as and when you need it.

California orders VW Group to fix 15,000 3.0L diesel vehicles

The California Air Resources Board has ordered Volkswagen to come up with a plan for repairing approximately 15,000 cars sold in the state that contain illegal software that may circumvent emissions testing. In a letter sent to Volkswagen Group of America and several company brands, CARB's chief emissions officer says the company has 45 business days to submit a recall plan that will fix affected Volkswagen, Audi, and Porsche models equipped with 3.0-liter diesel engines sold in the state since 2009. "We expect full cooperation in this investigation so this issue can be addressed expeditiously and appropriately," wrote Annette Herbert, chief of emissions compliance. The violations first surfaced in a meeting last week between California regulatory officials and Audi executives. In that meeting, Audi admitted certain versions of A6, A7, A8, Q5 and Q7 models contained three previously undisclosed auxiliary emissions control devices. An auxiliary device is not necessarily the same as a defeat device that intentionally cheats on emissions testing, but Audi and other affected brands hadn't disclosed the existence of the AECDs, which is a violation of the state's health and safety code. Had they been disclosed prior to vehicle certification, there's a possibility CARB may have approved use of the devices. In a statement Wednesday, CARB did not elaborate on whether it considered the three devices mere AECDs or defeat devices. When Volkswagen submits its plan to fix the cars, CARB says it must include an assessment of how the repairs will affect fuel economy, performance, drivability, and the safety of each vehicle. The 15,000 cars affected in California are part of roughly 85,000 nationwide which contain the affected 3.0-liter engines. The US Environmental Protection Agency may soon address how it expects Volkswagen to fix the remaining cars. "EPA and CARB are working closely and continue to investigate following the admission by Volkswagen that the issues EPA identified in the November 2nd NOV (Notice of Violations) extend to all 3.0-liter diesel Volkswagen, Audi, and Porsche vehicles," an agency spokesperson said in a statement Wednesday. "EPA will take all appropriate enforcement action." The 3.0-liter developments, of course, come on top of the company's September admission that 482,000 diesels equipped with 2.0-liter engines contain defeat devices that detect emissions testing and alter the cars' performance.