āCarmakers face electric reality as combustion engine outlook dimsā
European auto industry executives meeting at the International Motor Show (IAA) in Frankfurt face a threat to jobs and profits from pledges by governments ā including Chinaās ā to ban the combustion engine, Reuters reports. Plans for e-cars from Daimler, Volkswagen and Franceās PSA Group could put German jobs at risk, and give policymakers pause for thought, the article says. Mercedesā 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 ā50 billion euros of electric car parts, including batteries, which are not yet manufactured competitively in Europeā, Reuters reports.
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For background, read the Ā鶹ĪŽĀė°ę dossiers Frankfurt car show puts spotlight on German carmakersā troubles and BMW, Daimler, and VW vow to fight in green transport revolution.