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Autoblog Minute: VW Q3 financial woes, 2015 Tokyo Motor Show

Consumer Reports pulls its Tesla recommendation, the U.S. Copyright Office offers a ruling affecting car owners, VW gets hit hard with third-quarter losses, and lots of exciting news from Tokyo. Autoblog senior editor Greg Migliore reports on this edition of Autoblog Minute Weekly Recap. Show full video transcript text [00:00:00] Consumer Reports pulls its Tesla recommendation, the U.S. copyright office offers a ruling that affects car owners and gear heads, VW gets hit hard with third-quarter losses, and lots of exciting news from Tokyo. I'm senior editor Greg Migliore and this is your Autoblog Minute Weekly Recap. After a week away testing vehicles for Autoblog's Tech of the Year award, we're back in the office to recap the week in automotive news. [00:00:30] One of the things you might have missed was Consumer Reports pulling its recommendation of Tesla's Model S sedan. The blemish for Tesla comes after a tally of reviews from customer surveys. The most common problem areas for the Model S as cited by survey takers included: the drivetrain, power equipment, charging equipment, body and sunroof squeaks, rattles, and leaks. So lots of stuff. Though they could not ignore a score of "worse-than-average", Consumer Reports still [00:01:00] highlighted the fact that the Model S was "the best performing car" they've ever tested. Telsa CEO Elon Musk took to social media to defend his sedans saying: "Consumer Reports reliability survey includes a lot of early production cars. Already addressed in new cars." And, "Tesla gets top rating of any company in service. Most important, CR says 97% of owners expect their next car to be a Tesla (the acid test)." In Financial news, Volkswagen took a hit and reported an operating loss of [00:01:30] $3.84 billion. This is the first such loss for VW in 15 years. Toyota reclaimed the crown as the world's largest automaker as well. It's important that it's not all doom and gloom for VW though in Q3. Sales revenues were up and the company's automotive division boasts $30 billion dollars in liquid assets. It's a sizable war chest that will no doubt come in handy, as the company has yet to feel the full brunt of the diesel emissions scandal. Good news for gear heads. The US copyright office [00:02:00] ruled in favor of mechanics and car owners by granting an exception to existing copyright law. The law was originally meant to prevent software pirating and bootlegging of Hollywood movies.

VW bringing fuel cell concept to LA Auto Show

Amid the flurry of hydrogen announcements from Toyota and Honda last night, Volkwagen has something to add: a new hydrogen fuel cell concept vehicle. This will be the first VW hydrogen fuel cell vehicle in many years – remember the Tiguan Hy-Motion back in 2008? – and it comes as a bit of a surprise. First written up by the German publication Wirtschaft Woche, VW is going to have the prototype car (not pictured) available at the ride and drive at the Los Angeles Auto Show later this week. We don't yet know what kind of vehicle will sport the hydrogen powertrain, but our money's on a Golf variant. We'll see soon enough when we get to Los Angeles. What's interesting is that there have been a number of not-so-mixed messages out of the VW executive ranks when it comes to hydrogen vehicles. VW's Japanese president, Shigeru Shoji, said in September that, hydrogen fuel cells, "may fly within Japan, but not globally." Last year, VW's electrification head Rudolf Krebs said that "hydrogen mobility only makes sense if you use green energy." Also last year, VW CEO Martin Winterkorn said it's basically impossible to build hydrogen vehicles at a "reasonable cost." Nonetheless, we're going to see a new VW H2 concept soon. Thoughts?

EPA upping its game amid Volkswagen probe

In the wake of the Volkswagen emissions-cheating scandal, the Environmental Protection Agency vowed to crack down on the auto industry with renewed vigor. That process has started. Janet McCabe, the agency's assistant administrator, said Tuesday that the EPA has already obtained a range of vehicles for testing purposes and that its enforcement staff is working as quickly as possible to determine whether other automakers are gaming emission results. "That's another detail we'd rather be obscure about, so that we can make sure people don't know what we're doing." For now, she said the agency is focused on diesel vehicles. But the scope of the new examinations could broaden to include gasoline-powered cars. The renewed efforts could include more light-duty vehicles or focus on heavy-duty trucks. The testing procedures could use dynamometers or portable emissions equipment. Right now, pretty much everything is a possibility. "We're going to become unpredictable, we're upping our game and we're going to use the whole range of technology that we have," she said. That technology now includes a heavy-duty truck chassis dynamometer at the EPA's national Vehicle and Fuel Emissions Laboratory in Ann Arbor, MI. Officials unveiled the $3 million piece of equipment Tuesday and hailed it as the first of its kind in North America. A Freightliner Super Truck, which boosted its fuel efficiency to 12 miles per gallon with the help of a $40 million federal grant, rolled onto the dynamometer in a ribbon-cutting ceremony Tuesday. McCabe said the new dynamometer will allow the EPA to assess the performance of the entire truck – not just its engine – and help engineers test 18-wheel tractor trailers measure, hydrocarbons, greenhouse gases, carbon monoxide and more. In the past, it took about a week for engineers to remove an engine from a truck and prep it for testing. With the new equipment, drivers can open a garage door and drive the rigs straight onto the dynamometer. A wealth of new, real-time data will be helpful as the EPA works with the National Highway Traffic Safety Administration in planning for the second phase of the government's greenhouse gas emission and fuel-efficiency standards for medium and heavy-duty engines and vehicles – a process now underway. While there's been a crush of attention on Volkswagen's scheming to circumvent emissions test, in the real world, it's these medium and heavy-duty trucks that are the bigger polluters.