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Home » European Carmakers Scramble to Address the Reality of Electric Cars

European Carmakers Scramble to Address the Reality of Electric Cars

September 15, 2017
Fortune

As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group made disclosures about their electric programs that could give policymakers some pause.

Planned electric Mercedes (MERCEDES.BENZ-FINANCIAL-SERVICES) 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 and investors on the eve of the Frankfurt show, speaking in the midst of a German election campaign in which automotive jobs have loomed large.

Volkswagen, for its part, said it was seeking new global supplier contracts to source 50bn euros ($60bn) of electric car content including batteries, which are not yet manufactured competitively in Europe.

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