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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.

Weekly Recap: Diesel scandal continues to fuel VW's woes

Volkswagen's woes continued this week when it was delisted from the Dow Jones Sustainability Index and stripped of awards. Senators are also lining up to advocate for criminal and civil action against the automaker, and its consumer reputation is in tatters. Put simply, it's been another rough period for VW. Despite this, the company eked out a sales gain of less than one percent in September, though that was well behind the overall market's performance. Sister brand Audi, which sells a diesel A3, was less affected, posting a 16-percent gain in September. Revelations that Volkswagen rigged millions of diesel-powered cars around the world didn't surface until September 18, so the full sales impact of the ongoing scandal won't likely be felt until October. Meanwhile, VW's image continues to take a beating, and an AutoPacific survey found only one in 14 vehicle owners have a positive opinion of the company. Before the scandal broke, three-quarters of respondents had a positive view of VW. The survey also found 64 percent don't trust Volkswagen, though the same number believe other companies are or may also be using cheating devices to pass emissions tests. "The reputation of diesels has been severely damaged, at least for the short term," Ed Kim, AutoPacific's vice president of industry analysis, said in a statement. Despite the lingering malaise, experts believe VW will recover, just as Toyota and General Motors eventually emerged from their own high-profile controversies. "Consumers have proven through numerous recalls that they are resilient and quickly return to their buying habits," Kim said. OTHER NEWS & NOTES Mazda to reveal sports car concept in Tokyo Mazda will bring a curvy sports car concept to the Tokyo Motor Show in October. The automaker is being especially coy with the details, only releasing the dark teaser shot that you see to the right and a cryptic statement that suggests the concept "condense[s] Mazda's entire history of sports-car development into a single model." Immediately, speculation abounded this is an RX-7 and RX-8 successor, though Mazda didn't specify what engine the concept will have. Reportedly, the company is still working on rotary engines. Mazda will have a Cosmo Sport 110S on its stand in Tokyo, which pioneered rotary technology in 1967. Read into that what you will. The Rock pitches Ford service Dwayne Johnson, also known as The Rock, is the new frontman for Ford service.

Volkswagen showcasing latest emergency vehicles at RETTmobil

RETTmobil may not be the top show on our calendars, but it's the top destination for police and emergency vehicles in Europe. The show opens this week in Fulda, Germany, and Volkswagen has revealed some of the vehicles it'll be presenting to first responders there this year. Leading the charge will be the new Golf Alltrack that has been set up specially as a command car, with special lighting, graphics and equipment like an accident data recorder and unique control panel. It'll be joined as well by specially equipped versions of the Passat, Tiguan and Touareg. Volkswagen Commercial Vehicles will also be on hand to showcase an Amarok pickup set up as a beach patrol car (you know, just in case Hasselhoff happens to be in town for the show), as well as a Transporter T6 van set up as an armored personnel carrier and a Crafter ambulance. Volkswagen prasentiert sich auf der RETTmobil 2015 - Golf Alltrack erstmals als Kommandowagen vorgestellt - Transporter T6 feiert Premiere als Mannschaftstransportwagen Hannover / Fulda, 4. Mai 2015 – Mit einer vielfaltigen Produktpalette prasentiert sich Volkswagen ab dem 6. Mai auf der RETTmobil 2015. Messehighlights sind der neue Volkswagen Transporter, der seine Premiere als Mannschaftstransportwagen feiert und der neue Golf Alltrack, der dort erstmals als Kommandowagen zu sehen ist. Bis zum 8. Mai konnen sich Besucher auf der internationalen Leitmesse fur Rettung und Mobilitat in Fulda uber Sonderfahrzeuge fur Rettungseinsatz und Krankentransport informieren. Am Volkswagen Messestand (Halle 3, Stand 303) prasentieren ein speziell ausgestatteter Golf Alltrack und ein Passat Variant 4Motion, das vielfaltige Leistungsspektrum der Marke Volkswagen Pkw fur den Rettungseinsatz. Beide Modelle sind als Kommandowagen aufgebaut und verfugen uber eine umfangreiche Sonderausstattung fur den Einsatz-betrieb wie etwa Digitalfunkvorbereitung, ein Sondertastenbedienfeld und eine Sondersignalanlage mit Blaulichtleuchte. Die Fahrzeuge sind ausserdem mit dem Unfalldatenspeicher UDS ausgestattet, der den Ablauf eines Ereignisses gerichtsverwertbar dokumentiert. Ein besonderes Messehighlight ist der neue Transporter T6 als Mannschaftstransportwagen. Das beliebte Einsatzfahrzeug von Feuerwehr und Rettung wird farblich passend in Rot-Weiss vorgestellt und bietet mit bis zu funf Einzelsitzen viel Platz fur das Einsatzpersonal und die notwendige Ausrustung.