According to China's top economic planning body, some local companies are cutting back on their efforts to hire new university graduates.China Economyread more
Airbus recorded orders and options for 123 planes, according to the aviation consulting firm IBA.iQ.Paris Air Showread more
Markets in Asia were mostly higher in Tuesday trade as investors awaited the start of a closely-watched meeting by the U.S. Federal Reserve, set to kick off later stateside.Asia Marketsread more
Wall Street analysts think Facebook's cryptocurrency payments project will give the company a big boost.Marketsread more
Chinese President Xi Jinping will travel to North Korea this week for a two-day visit, ahead of a possible meeting between Xi and President Donald Trump at next week's G-20...Politicsread more
The Pentagon said that the crew of one of the tankers, the Japanese Kokuka Courageous, found an unexploded limpet mine on its hull following an initial explosion.Politicsread more
Despite the popularity of companies like Beyond Meat and Impossible Foods, meat consumption around the world continues to rise.Food & Beverageread more
Electronic material that Infowars host Alex Jones turned over to families of Sandy Hook Elementary School shooting victims who are suing him contained images of child...Politicsread more
Facebook's reported move into cryptocurrency could amount to the biggest catalyst for digital assets in their decade-long history, some crypto investors say.Bitcoinread more
In a 7-2 ruling, over dissents from Justices Ruth Bader Ginsburg and Neil Gorsuch, the justices affirmed the so-called "dual sovereignty" exception to the Constitution's...Politicsread more
Eleven banks that lend to shipping lines announced Monday that climate impact will be integrated into the criteria that determines how much shipping companies can borrow, an...Transportationread more
Daimler has set a new target of saving 4 billion euros ($4.8 billion) by 2025 to help offset the lower profitability of electric cars, which at first may only earn half the margin of equivalent vehicles with combustion engines.
The company's Mercedes-Benz brand is preparing to launch the "EQ" electric car, which shares the underpinnings of the Mercedes-Benz GLC, a model that sells at a rate of around 1,000 cars a day. If the EQ proves popular, profits could take a hit initially, Daimler said at an investor say on Monday.
"In the beginning of the cycle we believe that we will have to face a significantly lower margin.
For some vehicles half of the margin of the vehicles they replace, " Frank Lindenberg, Vice President of Finance and Controlling at Mercedes-Benz Cars, said at the event in Sindelfingen, southwest Germany.
Daimler will produce the GLC and the EQ at the same plant, allowing it to adjust production of electric cars in line with demand. A rapid switch to electric cars may prevent it from meeting its return on sales target, Lindenberg said.
"We are still aiming for a 10 percent return on sales, but have to be prepared for a kind of transition, with a corridor of 8 to 10 percent," he said.
As part of the cost savings plan, Daimler wants to save 1 billion euros from fixed costs, and another billion from research and development and capital expenditure. The remainder would come mainly from product costs.
Daimler said that by 2025, the purchasing cost of electric cars would likely reach parity with combustion equivalents, which could accelerate migration to battery powered vehicles.
Electric cars are currently more expensive than combustion-engined cars because of battery costs.
One way for Daimler to lower costs would be to purchase a larger proportion of electric components from suppliers rather than making substantial parts of the car in-house, Chief Executive Dieter Zetsche said.
"Our vertical integration could be reduced significantly," he said.
"In-house production is almost irrelevant to the customer," he added, noting many compact Mercedes models were sold with Renault engines, without prompting complaints.
Mercedes still builds a large part of its gearboxes and engines in house.
By 2022, Mercedes plans to offer an electric version of every model it sells, with a total of at least 50 electric or hybrid models for sale. The Smart brand will stop offering combustion engined variants altogether in 2020.
One way to boost profits of electric cars in future could be to charge handsomely for autonomous driving functions that are increasingly being introduced as the technology advances.
"You will be able to also one day have a computer chauffeur," head of research and development Ola Kaellenius forecast.