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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.

Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Infiniti QX60 AWD vs. Mazda CX-9 Signature

In certain ZIP codes around Dallas, Chevy's Suburban remains the Official SUV of Texas, but Infiniti's QX60 could be the Official Crossover. The Pathfinder-based three-row is everywhere. And while its popularity is based on transporting kids and their stuff, the QX60 is a more urban Suburban. Mazda's CX-9 is not as ubiquitous as the QX60 in McMansion driveways, but it has been making inroads into the near-luxury segment with its near-luxury spec. The CX-9's second generation has obviously upscale intent, in the sheetmetal and throughout the top-line Signature interior. And the prices of these two cars are surprisingly close. INFINITI QX60 AWD: The sheetmetal differentiating Infiniti's QX60 from its volume-oriented Nissan donor is attractive. The changes are subtle, and in profile the Pathfinder and Infiniti are almost identical, but the eye is drawn to the differences in the grille and D-pillar. The Infiniti has a luxury vibe with a more athletic stance. The QX60's interior surfaces seem upscale, but if you want wood it will cost you. In "building our own" and opting for graphite leather with maple trim, the wood requires another $12,000(!) of mandatory packages, including Infiniti's Premium and Premium Plus packages ($1,800 and $2,900, respectively) and $7,300 of Deluxe Tech. So, wood? We wouldn't. But if you do, know the QX60 won't match the larger QX80 in presence or passion, but it is certainly something beyond a rebadged Pathfinder. For you and your passengers, there is 156 cubic feet of interior room; with the second and third rows folded, you can accommodate 76 cubic feet of cargo. Like in most crossovers, that third row is best used by young kids, but taking six adults to lunch won't require too much gymnastics – or chiropractics. On the road, the QX60 is known more for comfort than composure; this isn't an old Buick, but neither is it a BMW. Nissan's 3.5 liter V6 produces generous power (295 horsepower and 270 pound-feet of torque), but it's transmitted to either the front wheels or all wheels via a CVT (continuously variable transmission). Nissan has tried to mitigate the quirkiness, but it's a CVT all the same. At a well-equipped base of $44,000, we like the QX60. But start adding options, and you can approach $60,000, which is real money even in the better ZIP codes. MAZDA CX-9 SIGNATURE: This, ladies and gentlemen, is dramatic. Mazda has absolutely nailed it. Using Mazda's KODO design language on a large platform could have gone wrong.