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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.

2016 Mazda2 won't come to the US

Hoping to get your hands on the new Mazda2? Don't get your hopes up too high, because the latest word has it that the new hatchback won't be available in the United States. According to the report from Automotive News, Mazda's US office has decided against bringing the new Mazda2 to American showrooms. This despite it being made just south of the border in Salamanca, Mexico. The reasons are apparently two-fold. For starters, Mazda sales offices around the world have been clamoring for larger allotments of the new 2, and the company can only supply so many. "We could have had it, but we would have had a number that didn't make much sense with 600 dealers and with the marketing it takes to launch a new car," Robert Davis, Mazda's senior VP of US sales operations, told AN. For another, Mazda is apparently not convinced the new supermini would resonate with US buyers, who are increasingly migrating towards crossovers. So Mazda is focusing instead on "products that make us and our dealers considerably more profit than a Mazda2 does." That doesn't mean the latest Mazda2 will be entirely out of our reach forever, though. The company's agreement with Toyota will see a sedan version sold in the US as the Scion iA. Mazda is also certifying it to US safety and environmental standards so that it can sell the 2 in Puerto Rico, which means that it wouldn't take much to change course and bring the hatchback into the US in the future: "It'll always be there if we need it," Davis told AN. Reached for comment, a spokesman for Mazda's North American operations told Autoblog that "The Mazda2 launch in the U.S. market is on hold in order to evaluate the B-Car segment and enable us the opportunity to focus on the launches of the refreshed Mazda6 and CX-5, and the all-new MX-5 roadster and CX-3 subcompact crossover SUV." That leaves the aforementioned CX-3 - which is, incidentally, based on the same architecture as the Mazda2 - as the smallest mainstream model that Mazda will offer Stateside.

Automotive Grade Linux will be the backbone of your connected car

Creating a backend for a secure, reliable, and expandable infotainment system is costly and time consuming. The Linux Foundation, a non-profit organization, has set out to promote and advance the Linux operating system in commercial products. Automotive Grade Linux, or AGL, is a group within the Foundation that seeks to apply a Linux backend to a number of automotive applications in a variety of vehicles from various suppliers and manufacturers. AGL's goal is to create a common, unifying framework that allows developers and manufacturers to easily implement applications across platforms. Currently, the focus is on infotainment systems, but AGL has plans for instrument clusters, heads-up displays, and eventually active safety software. At CES, a display from Panasonic showed a completely digital and customizable dashboard that allows information and apps to be moved from the gauge cluster to the infotainment screen and back, all through the use of gesture and touch controls. Although the organization has been around for five years, it's really only been in the past three that the group has been working hand in hand with automakers and suppliers. The first two OEMs to participate, Toyota and Jaguar Land Rover, have since been joined by Mazda, Suzuki, Ford, and, as of this week, Daimler. The latter is important as until now most of AGL's partner's have been based in Japan or the US. Other partners include suppliers Denso, Renesas, Continental, Qualcomm, and Intel. AGL want's to supply roughly 80 percent of the backend, allowing partners to then finish and refine the Linux system for each individual application. Think of how the Android operating system is refined and customized for individual smartphones from Samsung, LG, and Motorola. While the final product looks different, developers can have an application that will work across all AGL systems. Because it is open source, anyone can use and develop for AGL. You can even go onto the group's website and download a copy right now. There is also a software development kit available that helps facilitate app creation on the platform. Vehicle development cycles take roughly five years, so there currently are no cars that run an AGL backbone available for consumers. AGL Executive Director Dan Cauchy says products should be hitting the market later this year, with even more coming in 2018. Right now, the industry is relatively fragmented when it comes to infotainment and related systems.