“Carmakers face electric reality as combustion engine outlook dims”
European auto industry executives meeting at the International Motor Show (IAA) in Frankfurt face a threat to jobs and profits from pledges by governments – including China’s – to ban the combustion engine, Reuters reports. Plans for e-cars from Daimler, Volkswagen and France’s PSA Group could put German jobs at risk, and give policymakers pause for thought, the article says. Mercedes’ electric model will initially be just half as profitable as conventional alternatives, forcing it to cut costs by outsourcing component manufacturing, the article says. Similarly, Volkswagen is seeking new global suppliers for “50 billion euros of electric car parts, including batteries, which are not yet manufactured competitively in Europe”, Reuters reports.
Read the article in English here.
For background, read the CLEW dossiers Frankfurt car show puts spotlight on German carmakers’ troubles and BMW, Daimler, and VW vow to fight in green transport revolution.