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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.

Recharge Wrap-up: Tesla Model S full speed, Pheonix EVs at LAX

A Tesla Model S driver shows what it's like to maintain about 125 miles per hour on the German Autobahn. In the video, Bjorn Nyland records his trip from a stop at a Supercharger 25 miles to the Danish border while driving about 200 kph for about 12 minutes. Upon entering the Autobahn, he hits the limiter at about 212 kph, or almost 132 mph. As he's driving, the car's estimated driving range adjusts for his speed, and he quickly loses quite a few miles. He doesn't care, though. He's having fun. See the video above, and read more at Inside EVs. Phoenix Cars has provided an Electric Shuttle Bus to an airport parking company at the Los Angeles International Airport. As LAX's first electric shuttle bus, it is expected to run two shifts seven days a week, saving more than 60 tons of CO2 emissions yearly. The electric shuttle bus will be on display from June 29 to July 2 at the International Parking Institute Conference and Expo in Las Vegas. Phoenix also recently supplied its ZEUS electric flatbed to the US Navy. Read more in the press release below. Ballard will operate a fleet of eight hydrogen-powered buses in London for an additional five years. Transport for London uses the buses, powered by Ballard fuel cell technology, for its central Covent Garden-Tower Gateway route. The first five buses went into service in 2010 as Transport for London aimed to reduce CO2 emissions by 60 percent from 1990 levels by 2025. The three additional buses joined the fleet in 2013. "This contract extension is a positive endorsement of zero-emission fuel cell technology in transit applications, based on the demonstrated performance of these buses over the past five years," says Ballard Chief Commercial Officer Steve Karaffa. "Clean transportation is a growing concern for transit authorities globally and our fuel cell modules deliver a proven solution." Read more from Ballard. Volkswagen and SAIC are expanding electric vehicle operations in China. The partners will expand the main Shanghai Volkswagen plant to build electric vehicles. "Over the next four years, we plan to localize more than 15 different electric vehicle models in China, including plug-in hybrids and fully electric vehicles," says Volkswagen's Prof. Dr. Jochem Heizmann. Volkswagen will also step up fuel cell and plug-in hybrid research in China. In about four years, Volkswagen will build a new EV, based on the popular Lavida, at the Anting plant outside of Shanghai. Read more from Volkswagen.

EPA discovers defeat device in more VW TDI engines

In a sternly worded letter, the United States Environmental Protection Agency has issued a new set of allegations against Volkswagen claiming that so-called emissions defeat software has been found in the company's 3.0-liter TDI V6 diesel engines. This is a completely different engine than the 2.0 TDI that has already been identified as an emissions cheater. In addition to VW, the EPA has included Audi and Porsche in this notification, as the non-compliant engine has been used in vehicles from all three manufacturers from model years 2014 through 2016. The EPA claims that cars equipped with the 3.0 TDI engine know when they are being tested for emissions, and their on-board computers switch into a mode designed to pass the stringent requirements in the United States for diesel exhaust. Vehicles sold in the United States with this engine include the 2014 VW Touareg, 2015 Porsche Cayenne, and 2016 Audi A6, A7, A8L and Q5. The EPA says there are 10,000 vehicles currently on the road with this second defeat device, along with an unknown number of 2016 models either on dealer lots or in the driveways of consumers. According to the EPA, VW's 3.0-liter TDI, like the 2.0 TDI that was found to circumvent US regulations, has code in its computer specifically written to intentionally put the vehicle's engine into a mode that allows it to meet exhaust requirements. When the vehicle is unhooked from testing equipment, it will go back into a mode that emits nine-times higher nitrogen oxide emissions than is allowable under US law. "VW has once again failed its obligation to comply with the law that protects clean air for all Americans," said Cynthia Giles, Assistant Administrator for the Office for EPA's Enforcement and Compliance Assurance. "All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect." Richard Corey, Executive Officer of the California Air Resources Board, said in a statement, "Today we are requiring VW Group to address these issues. This is a very serious public health matter. ARB and EPA will continue to conduct a rigorous investigation that includes testing more vehicles until all of the facts are out in the open." This story will be updated as new information becomes available.