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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.

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

2016 Toyota RAV4 Hybrid electrifies with updated styling, more tech

Since the launch of the Prius, Toyota has been closely identified with hybrids and electrification. However outside of the rather niche RAV4 EV, the company hasn't brought the efficient tech to the smallest crossover in its US range. That all changes with the debut of the 2016 RAV4 Hybrid at the 2015 New York Auto Show, and the crossover launches alongside a thoroughly refreshed RAV4 lineup. Similar to the Lexus NX 300h, the RAV4 Hybrid combines a 2.5-liter, four-cylinder engine running on the Atkinson cycle and an electric motor, and both axles get power thanks to the standard Electronic On-Demand All-Wheel-Drive System. Toyota is keeping the exact technical specs about the CUV a secret until closer to the fall launch but admits the hybrid setup offers more than the 176 horsepower in the internal combustion model. The electric assistance means quicker acceleration and better fuel economy, as well. Beyond just the availability of the hybrid powertrain, the 2016 RAV4 gets sharper, more aggressive styling. The changes start at the nose where the foglights are recessed in the front bumper, and the design draws the eye across the lower grille. There are also reshaped lights at the rear and a redesigned lower bumper with silver skid plate trim. Inside, the improvements include niceties like better material quality, an added USB port up front and cupholders for tall mugs. While the styling looks great, Toyota is also seriously upgrading the available tech for its strong-selling CUV. Buyers can spec a full array of LED lighting, including the headlights, running lights and taillights. There's also the new Toyota Safety Sense suite that adds pre-collision braking, lane departure warning radar cruise control and more. For help with parking, the company has the four-camera Bird's Eye View Monitor, as well. The RAV4's trims carry over and get a new addition called the SE. Its biggest features are a retuned sport suspension, 18-inch wheels, contrasting exterior trim and a black headliner. It also comes fairly loaded with features with the aforementioned LED lights. With all of these changes, Toyota is continuing to take the crossover market seriously. Look forward to live images of the upgraded RAV4 from the Big Apple in the near future.