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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.

Volkswagen bringing new Tiguan to Frankfurt

As expected, Volkswagen will introduce the new Tiguan crossover at the upcoming Frankfurt Motor Show. While the brand hasn't quite gotten on the endless teaser train, VW's German Facebook page has released a simple shot of the new crossover covered up on the Wolfsburg factory line. We're not able to learn much from the single image released by VW Deutschland, as the sheet being used hides virtually all the body's details. The caption for the image is no help either, simply saying that the first Tiguan for Frankfurt has rolled off the Wolfsburg line. So yeah, that's about it. But while this image isn't terribly informative, we already know quite a bit about the new Tiguan. Its looks will likely be inspired by the Cross Coupe GTE and CrossBlue Concepts, while additional body styles could be offered later in the CUV's life. For performance fans, there will likely be a 300-horsepower R model, in addition to the standard array of gas and diesel engines. Check out the image from VW Germany's Facebook page, and then be sure to head back in a few weeks for the 2015 Frankfurt Motor Show.

At least 30 VW managers knew of emissions cheat

You know how the Volkswagen diesel scandal is very, very, very bad? Well, if a report from Germany's Der Spiegel is true, it's about to get a lot worse. Throughout the entire affair, VW has maintained that it was a small, isolated group behind the so-called defeat devices. Der Spiegel, though, claims that at least 30 managers knew what was going on and that dozens will be suspended for their role in the scandal. The story cites both an external probe ordered by VW and conducted by US law firm Jones Day as well as the company's own preliminary findings. This report flies directly in the face of what Volkswagen of America CEO Michael Horn, shown above, said in his sworn testimony to congress last week. Horn straight up said that the scandal "was something individuals did," blaming a sort of rogue group of software engineers (although he also acknowledged such an argument was hard to swallow). If it's proven that he was among the 30 employees involved, or he can be otherwise connected, the embattled exec could be in big trouble. According to the Der Speigel story, a VW spokesperson said, "The number is without foundation." Der Spiegel also cited a VW engineer, who said that any diesel engine, like the EA188, EA189, and EA288, that could get by without pricey emissions controls should "have [made] any engine developers leery." We should expect additional information on VW's internal response to the scandal later this week, when Group CEO Matthias Mueller addresses management.