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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.

Will more efficient tech mean higher prices for Subaru?

If the latest ruling by the California Air Resources Board holds, then Subaru at least must build a plug-in hybrid in the coming years to comply with the Golden State's regulations. Fuel economy looks to improve across the board for the brand, though, thanks to $780 million going into the development of cleaner powertrains for this fiscal year alone. However, buyers might have to pay more for a Subie in the future after this boost in green spending. "Related costs are going up more than expected, bringing the profit margin downward," Fuji Heavy Industries President Yasuyuki Yoshinaga said to the Nihon Keizai newspaper in Japan, according to Automotive News. "We are a small company. We do not benefit as much from economy of scale as bigger companies, so we will have to make up for the increased costs by raising our brand value." At the moment, Subaru's electrified lineup in the US comprises just the XV Crosstrek Hybrid, but the company is reportedly planning to add more. Plus, Subie also wants to make its internal combustion engines more efficient. According to Automotive News, all of the brand's mills are getting direct injection by 2016, and cylinder deactivation and lean combustion cycles are on track for 2020. Earlier rumors also suggested that the automaker might bring the turbocharged four-cylinder boxer to more products, as well. While these more efficient models might cost more, Subaru must carefully maintain the balancing act of introducing the technology and keeping sales growing. As of May 2015, the brand had 42 straight months of year-over-year growth in the US and had record sales in the country last year. The company has already decided to significantly boost production capacity at its Indiana factory in hopes of keeping the good times rolling.

Subaru BRZ gets updates, limited-edition Series.Blue model for 2015

The popular complaint about the Subaru BRZ is that its 200-horsepower, 2.0-liter-boxer engine is underpowered compared to other, modern sports coupes. Subaru isn't doing anything to address that for the 2015 model year BRZ, but the company does have some aesthetic upgrades ready for its rear-wheel-drive two-door and a limited-edition version with a more aggressive body.
The big news for the 2015 BRZ is the Series.Blue Special Edition (pictured above) that is limited to 1,000 units for the US with 500 of them in the brand's famous WR Blue Pearl and the other 500 in Crystal White Pearl. Mechanically, the special models are unchanged with the 2.0-liter boxer engine and a six-speed manual, but they wear an exclusive, black, STI-branded body kit that includes a new lower-lip front spoiler, rear spoiler, side sills and underbody panels. Subaru claims the whole setup increases front downforce and decreases the car's coefficient of drag from 0.28 to 0.27. To match the new kit, the limited-edition cars feature black, 17-inch wheels from STI with contrasting red brake calipers hiding behind them. The interior sees nearly as many changes as the outside with black and blue leather sport seats with blue stitching, and a similar motif for the steering wheel, shift boot, parking brake and kneepads. The illuminated engine start button gets an STI logo, as well. The Series.Blue arrives at dealers in July for $30,285, after the $795 destination charge.
The rest of the BRZ lineup isn't left out and has some minor upgrades of its own, with revised damper settings, stainless steel exhaust tips, a body-color shark fin antenna and a simulated carbon fiber dashboard panel - similar to the upgrades found on the 2015 Scion FR-S. Two new colors are available - Ice Silver Metallic and Crystal White Pearl. Prices are up $100 across the board for 2015. After destination, the Premium trim is $26,490; the Limited is $28,490; the Limited with an automatic transmission is $29,590. The 2015 models hit dealers this summer. Scroll down to read the full announcement.