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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.

Subaru Levorg: Forbidden fruit

For Subaristas, the Levorg needs no introduction. Fans of the marque have been begging Subaru of America (SOA) to bring it over here from the moment it was first introduced. First introduced in Japan a year or so ago, and now making its way across the globe, it is one delicious wagon that SOA refuses to let Americans taste. Why? Wagons don't sell in America, so they say (some Euro-brands might disagree with that). Plus they seem to think they have the wagon market pretty well covered with the Outback, Forester, and to a lesser degree, the Crosstrek. First a bit of history Unlike here in America, at least in recent years, a Legacy wagon continued to exist in other markets. At some point Subaru decided to also delete it from their global portfolio, and to replace it with the smaller, sportier and well-equipped Levorg. The thinking was that the Levorg would be more distinct from the Outback than a Legacy wagon, and would be less likely to step on the Outback's toes in terms of searching for customers; makes sense. Another point needs to be made: Subaru is selling at record levels. They just can't make them fast enough as they are constrained by lack of production capacity. That will improve soon as the next-gen Impreza will be built in their Indiana plant this fall once the Toyota Camry production moves out. So, at the moment, they don't need the Levorg to improve sales. Down the road that may be a different situation, but for now adding another model line would be tough and of little benefit. Why America needs the Levorg When Subaru introduced the current generation WRX they deleted the hatchback — which accounted for 50 percent of WRX sales. Needless to say WRX 5-door owners were outraged — and continue to be so. The Levorg wagon could be the perfect answer for these folks, as shares many parts with the WRX. In Japan it's available with a new 1.6L direct-injection turbo as well as the same 2.0L direct-injection turbo found in the WRX. Other markets, to date, only get the 1.6L engine. All Levorgs have CVTs, with the 2.0 versions getting the high-torque CVT found in the WRX CVT. The chassis setup, while a tad softer, is very close to that of the WRX. So it is definitely a car that's cut out for canyon-carving. It's also more upscale than the WRX, with an interior more akin to luxurious trim levels of the Legacy and Outback. In its defense Subaru has claimed that the budget did not allow for developing both the Levorg and a 5-door WRX.

Subaru shows racing versions of STI and BRZ

While we gear up for next week's Detroit Auto Show, the 2015 Tokyo Auto Salon is currently on going, and Subaru has marked the occasion by trotting out a pair of new racers. First up, we have the car shown above, with the company's entry to the 2015 Nurburgring 24 Hour Race. Subaru is entering a WRX STI in the grueling endurance race, which runs from May 14 to May 17. The left-hand-drive racer has received a fair crop of upgrades for endurance duty, although Subaru didn't really bother to elaborate on them, unfortunately. Next to the N24 car, Subaru introduced a striking version of its rear-drive BRZ, destined for the Japanese Super GT series. The team campaigning the BRZ will be led by Subaru's Hideharu Tatsumi, who will also be one of the drivers for the Nurburgring effort. Again, Subaru hasn't offered any info on technical changes for the BRZ GT300. Scroll down for the brief press release, and then check out the galleries of both cars. 2015 SUBARU Motorsport Activities Tokyo, January 9, 2015 – Fuji Heavy Industries Ltd. (FHI) - the maker of Subaru automobiles and Subaru Tecnica International Inc. (STI)* unveiled the new racing car developed from the WRX STI for 24 Hours Nurburgring endurance race in 2015 and announced an outline of Subaru Motorsport activities for 2015 at the Tokyo Auto Salon 2015 with NAPAC (Japan Car Parts and Aftermarket Promotion Association). *: Subaru Tecnica International Inc. (STI; President Yoshio Hirakawa; located in Mitaka, Tokyo) Nurburgring 24-Hour Race STI will participate in the Nurburgring 24-Hour Race (from 14 to 17 May in Germany) for eight consecutive years, with a vehicle whose performance has been enhanced from its base car – the Subaru WRX STI. The race car's performance such as aerodynamics, stability, body rigidity and engine output have been enhanced compared to the previous model. In addition, visibility for racing flags has also been improved by introducing a left-hand drive car. Like last year, Hideharu Tatsumi will take the helm of team operations as team manager, in addition to the development of the car. The drivers are Sasaki (Japan), Lasee (Germany), van Dam (Netherlands) and Tim Schrick (Germany), the winner of 2014 VLN endurance racing championship who newly joins the team. SUPER GT Series Subaru, with the "SUBARU BRZ GT300" race car, will participate in the SUPER GT series this year as well, widely regarded as Japan's top motorsports category.