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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.

To the end of the world in a Subaru

On a quiet beach in southern Argentina, I stood in awe facing the Desdemona, a massive cargo ship that wrecked ashore in the mid-1980s and has remained untouched for the subsequent 30 years. In the intervening time, Desdemona was not vandalized, nobody broke her down and sold the parts for scrap, and unlike what you'd expect in the United States, no one set up shop to sell memorabilia in addition to a $5-beach entrance fee. This is only one of a thousand gorgeous vistas that make up Patagonia, the southernmost part of South America and, indeed, the end of the world. I was there to drive Subarus along dirt two-track roads and gravel highways on an epic journey from El Calafate to Ushuaia. Subaru would have you believe that this sort of rugged wilderness is the natural habitat for its cars. Whether or not that is a stretch, the Subies proved to be up to the task of trekking Patagonia. But I fully expected that from the get-go. What I didn't expect was how every part of this journey – the cars, the location, the people – would combine to form one of the greatest travel experiences of my life. View 85 Photos The end of the world. Patagonia is gorgeous, vast, brilliant. And those words don't even really do it justice. The plains, the lakes, the mountains, the forests all feel like every color is more vibrant, every detail is sharper. It's like looking at the world through an Instagram feed, and then realizing that every photo has the "no filter" hashtag. The journey started on Valentine's Day, with senior video producer Chris McGraw and I flying to Atlanta, followed by a 12-hour flight to Buenos Aires. That's where we met the rest of the group, and spent a day relaxing and exploring the Argentine streets and shops. "It's like looking at the world through an Instagram feed, and then realizing that every photo has the 'no filter' hashtag." But we still weren't at our start point. From Buenos Aires, we hopped a flight to El Calafate, about 1,500 miles southwest. It's a common entrance point to Patagonia for tourists and explorers because of its proximity to the Perito Moreno Glacier, a stunning site we visited the next day. Watch our earlier update video to see more about the glacier – an ice formation three times the size of Manhattan (and growing!). If Patagonia is on your bucket list of vacation destinations, this glacier is a mandatory stop. There's a boardwalk that runs along the lakes, leading right up to the face of the glacier.

Toyota GT86, Scion FR-S sales disappointing worldwide?

Okay, folks - it appears we've got a problem. The Toyota GT86, Europe's counterpart to our own beloved Subaru BRZ and Scion FR-S coupes, is apparently not selling too well. This, according to Toyota's European Vice President of Research and Development, Gerald Killman, is what's limiting plans for additional variants of the rear-drive coupe.
"A faster version of that car would be at the top of most people's wish lists, but like the cabriolet, it is hard to justify a business case to push either model into production based on the current sales," Killman told AutoExpress. "Personally, I think that engine could use a little bit more," he added.
More troubling is that slow sales aren't limited to the Euro-spec car, with Killman claiming that the GT86 have been missing sales targets in major markets around the globe. It may not be that the US is one of those major markets, though. Scion's Vice President, Doug Murtha, tells Autoblog that his brand is happy with the sales of its version of the GT86, the FR-S. 18,000 units were sold last year, which Murtha says is "generally in line with original expectations for the car."