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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 Sport Coupe Concept GTE 'marks beginning of a new design era' [w/video]

You didn't think that Volkswagen was going to come to Geneva armed only with a bunch of European-market minivans and wagons, did you? Of course not. Last week VW gave us our first glimpse at a new show car for the Swiss auto expo, and here it is in full: the Volkswagen Sport Coupe Concept GTE. Set to be unveiled at the Geneva Motor Show this week, the Sport Coupe is envisioned as a successor to the current CC, but beyond previewing a specific model, this concept showcases a new design language that's set to characterize all new VWs to come. And judging by how good it looks from the images in the slideshow above, that could prove to be a very good thing indeed. The concept strikes us as the sleekest iteration yet of the company's flexible MQB architecture that already underpins vehicles as small as the Golf and as large as the new Skoda Superb. It's larger than the current CC in every dimension but height, and pushes the wheels further out on a longer wheelbase. And with a liftgate at the back instead of a trunk, it strikes a form more similar to the Audi A7 than the Passat-based CC. As with recent past concepts, VW has taken the opportunity to showcase its hybrid powertrain technologies, fitting the Sport Coupe with a plug-in hybrid system that couples a 3.0-liter turbocharged V6 to a pair of electric motors and a six-speed dual-clutch transmission. The internal combustion engine drives 295 horsepower and 369 pound-feet of torque to the front wheels, while an electric motor integrated into the gearbox contributes another 54 hp and a second one kicks in 114 hp at the rear. Juiced by a lithium-ion battery housed in the center tunnel and offering all-wheel traction, the combined output of 374 hp is said to be capable of propelling the concept to 62 miles per hour in five seconds flat and on to a top speed of 155 mph. It can travel for 32 miles on electric power alone and on to an overall range of 745 miles, netting the equivalent of 118 miles per gallon on the European cycle. Inside, the four-seat cabin is laden with digital displays: there's a 12.3-inch unit – dominated by the speedo and power meter – in place of a conventional instrument cluster. The center stack incorporates a 10.1-inch infotainment display, and the rear-seat passengers have access to another 12.3-inch display at the back of the center console and another pair of 10.1-inch displays in the seatbacks.

VW's credit ratings could take a beating

In addition to a significant drop in its share price already, Volkswagen's diesel emissions scandal is continuing to have major financial repercussions on the German automaker. According to The Detroit News, credit rating agencies like Standard & Poor's and Moody's changed their forecasts on the company to negative, and Fitch has considered doing so, as well. Volkswagen appears to have the money to cover the costs of this ordeal, but the agencies question the effect that this has in the long term. "Moody's concern, however, is that Volkswagen's alleged breach of US environment rules and, especially, the process by which that breach occurred, will have an adverse effect on its reputation and credibility within the global passenger car markets," the company wrote in a note to investors, according to The Detroit News. VW has initially set aside $7.25 billion to fix things, but the potential shakeup of top executives has caused some investor uncertainty, too. The actual costs for VW to deal with this scandal are still unknown. In the US, the Department of Justice has begun a criminal investigation, and with other automakers the government has settled for $900 million against General Motors and $1.2 billion against Toyota. Attorneys general in 29 states have started looking deeper, according to The Detroit News, and regulators in Europe, South Korea, and Canada have commenced their own probes, as well. Related Video: