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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.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Mazda CX-30 'just right' crossover will head from Geneva into production

As more and more customers move into the crossover segment, the less the segment is one-size-fits-all, or even three-sizes-fit-all. As such, Mazda has taken the opportunity at the Geneva Motor Show to offer a new, "just right" crossover to its lineup. The 2019 Mazda CX-30, as it's called, slots between the diminutive CX-3 and the compact CX-5 crossovers. The CX-30 shares the "Kodo" (meaning "soul of motion") design language Mazda does so well, and the execution here is excellent, too. We love the long hood and simple but elegant curves, the way the light reflects off the sides in dramatic waves. Its no surprise that Mazda chose its Soul Red Crystal to show off the new model. Mazda says it had four goals for the CX-30, two of which had to do with the size of the vehicle. It needed to be small enough to be highly maneuverable, so that drivers wouldn't hesitate to take it anywhere they need to go, but it also had to be roomy enough to provide a comfortable space for multiple passengers to easily enjoy one another's company. Mazda wanted the design to "embody the joy of owning something that matches your sensibilities." Finally, it had to perform in a way to provide peace of mind and a relaxing driving experience. Mazda will offer the CX-30 with its Skyactiv-G 2.0 gasoline engine with cylinder deactivation, Skyactiv-D 1.8 diesel engine and its new Skyactiv-X engine with gasoline compression ignition. Both gasoline engines will use Mazda's mild hybrid technology to help improve fuel economy without sacrificing performance. The CX-30 will also be offered with Mazda's I-Activ all-wheel drive and G-Vectoring Control Plus for maximum grip and stability. It will be available with either a six-speed manual or six-speed automatic transmission. The CX-30 is equipped with a driver monitoring system to improve safety using an infrared LED and camera to watch the driver's face for signs of drowsiness or inattentiveness. It'll alert the driver to pay attention, and will sound the braking alert earlier. Other active safety systems include available Front Cross Traffic Alert and Cruising & Traffic Support, the latter of which will employ accelerator, brake pedal and steering operations in traffic jams to help avert driver fatigue. Mazda hasn't said whether it will offer the CX-30 outside of the European market. Related Video: