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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.

Mazda returning to top-tier racing with diesel-powered prototype in USCC

Mazda has unveiled its latest challenger in the top flight of endurance racing, a diesel-powered prototype that will campaign the inaugural, 2014 Tudor United SportsCar Championship. The new Skyactiv-D-powered car will make its race debut at January's Rolex 24 at Daytona.
"This is the most significant step Mazda has taken towards returning to the global racing stage since our overall victory at Le Mans in 1991," said the director of Mazda Motorsports, John Doonan. That historic racecar, the rotary-powered 787B, has grown to become one of Mazda's many, well-known racers.
More recently, the Japanese brand has been making waves in the Grand-Am series, campaigning RX-8s and, most recently, running diesel-powered Mazda6 sedans in the GX-class. Mazda will campaign two factory-backed prototypes at Daytona. Driver lineups will be announced closer to race day.

Mazda still really wants to bring diesels to America

Mazda's Skyactiv program has delivered much of what it promised for the brand's latest crop of products, namely great fuel economy and excellent driving dynamics. However, the Skyactiv diesel engine has yet to reach our shores. It's been promised ever since the new Mazda6 showed up here for the 2014 model year. According to a new report from Automotive News, Mazda's CEO Masamichi Kogai said that the Mazda Skyactiv D diesel powertrain is still set to make an American appearance. He told Automotive News that there is an internal timeline to get it to the States, and while he didn't reveal the timeline, he said he wants it to come here before he steps down as CEO. The powertrain is offered elsewhere, so it fits in the company's current vehicles, but the US has specific regulatory hurdles, and the engine's extra cost has to make sense from a sales and volume perspective. We doubt VW's diesel scandal helped the engine's sales pitch, either. Automotive News also reports that the next generation of Skyactiv designs and engines are also on their way and will advance and improve on the current generation's strengths. Engineers revealed to Automotive News that they expect a 30 percent improvement in efficiency and are developing an engine with the sky-high compression ratio of 18:1. This impressive ratio could be a further indication of Mazda's pursuit of homogenous charge compression ignition (HCCI) engines. Mazda has had plenty of success with its strategy of making very efficient internal-combustion engines, but there are some concerns that the company can only improve so much. The main worry comes from the company's lack of investment in hybrid and electric powertrains. Even Mazda's North American CEO Masahiro Moro expressed concern about meeting a 54.5 mpg mandate for 2025. That mandate will no longer take effect, but increasing fuel economy requirements will always be an issue. Related Video: