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California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

Subaru recalls more cars, slashes guidance as cheating issue widens

By Naomi Tajitsu TOKYO — Subaru Corp said it would recall more vehicles sold in the Japan domestic market on new cases of inspection cheating, and cautioned that rising recall costs would lop off about a quarter from its annual profit forecast. Shares in Subaru, already reeling from a series of recalls for issues ranging from faulty components to inspection do-overs, fell 5 percent to a four-year low on Monday after news of the fresh recalls and the bleak outlook. The company, the smallest among Japan's major automakers, said it would recall around 100,000 vehicles, including its popular Impreza sedan, after discovering that final tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected. "It's unforgivable that these inspection-related issues are continuing," CEO Tomomi Nakamura said at a briefing, while repeatedly adding that the latest recall would be the last related to testing misconduct. The automaker expects to incur 6.5 billion yen ($57 million) in costs related to the latest recall. This, along with other quality-linked issues, is expected to push down Subaru's operating profit to 220 billion yen in the year to March 2019. It had previously forecast a 300 billion yen profit. Subaru posted a surprise operating loss of 25 billion yen for the three months ended September, its first time in the red for a quarter since 2009 and missing a mean forecast for a 68.46 billion yen profit from 10 analysts polled by Refinitiv. Recall-related costs were the main driver of the loss, while global sales fell 6 percent over the quarter due to weak demand in the United States — its biggest market, where overall demand has cooled since record-high sales in 2016. (Click here for an interactive version of this chart) Engine recall Last month, Subaru nearly halved its first-half operating profit view, citing higher quality-related costs. It later announced a global recall of around 400,000 vehicles, including its Forester SUV and Impreza sedan, to fix a design flaw in the engines' valve springs. That came on the heels of another series of recalls stemming from revelations last year that uncertified workers had been submitting final inspection reports for vehicles sold in Japan. That had also led to a recall of about 400,000 cars. Recalls are common in the auto industry, and automakers regularly put funds aside to pay for them.

2016 Subaru BRZ and STI get Hyper Blue for new limited special editions

Blue fits as well on a fast Subaru as red does on a Ferrari or silver on a Mercedes-Benz. The color just clicks somehow with the Japanese automaker's performance models, and apparently the company knows it. This fall for the 2016 model year, the BRZ and WRX STI are getting new Series HyperBlue limited editions with an exclusive cerulean shade as the major selling point. Pricing is being held until closer to launch. Limited to 500 units, the 2016 Series HyperBlue BRZ is a follow-up to 2015's Series Blue edition. Hyper Blue looks to be a much lighter shade than Subaru's famous WR Blue, but the new color is still fairly attractive. The tone covers the entire exterior but is contrasted with black for the 17-inch wheels, badges, and mirror covers. The exclusive hue is carried inside too for the seat bolsters, headrests, stitching, door trim, and a mix of blue and black leather on the steering wheel. So if you're in, you're all-in. All BRZs get some other tiny tweaks for the new model year, too. A rearview camera is now standard, and Subaru's upgraded 6.2-inch Starlink infotainment system is available. More power is rumored as part of a more thorough refresh for the 2017 update. With production limited to 700 units, a few more Series HyperBlue editions of the 2016 STI are going to be on the street. Although, there aren't as many tweaks for them. Of course, the new color covers the outside, and it's also offset with black on the 18-inch BBS wheels, badges and mirror caps. Blue stitching brings the color into the interior, and Subaru's seven-inch navigation system with a nine-speaker stereo is standard for this version. Related Video: SUBARU TO OFFER LIMITED EDITION SERIES.HYPERBLUE BRZ AND WRX STI MODELS Limited to 700 WRX STI & 500 BRZ BRZ receives upgraded SUBARU STARLINK® Multimedia Rear Vision Camera now standard on BRZ Exclusive Hyper Blue exterior paint and interior trims Cherry Hill, N.J. - Subaru of America, Inc. has announced the 2016 Series.HyperBlue limited edition available exclusively on BRZ and WRX STI models. As a follow up to the 2015 Series.Blue BRZ, the 2016 Series.HyperBlue cars feature exterior paint in Subaru's exclusive Hyper Blue with matching interior trim. Production will be limited to 700 WRX STI and 500 BRZ cars for the United States. Vehicles will go on sale this Fall.