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Subaru profits fall by half last year among recall maladies

Subaru took a financial beating last year, according to its freshly released earnings report. During the full fiscal year, which ended March 31, the carmaker's operating profits effectively halved. Net income dropped 33% to 147.81 billion yen, or $1.33 billion, and revenue fell 2.2% to 3.16 trillion yen ($28.5 billion). Subaru states that its operating income declined by 48.5% to 195.5 billion yen, or to about $1.78 billion. According to Subaru, this was not only due to a decrease in sales, but also due to recall campaigns. Total production decreased nearly 6% to 989,000 units, and production stoppages at the Gunma plant were partially to blame for that — but Impreza, XV and Levorg sales also sank. The redesigned Forester did start out well in the summer, but sales in the first half of 2018 were more modest with the outgoing generation still in the showrooms. The Gunma manufacturing plant, Subaru's sole factory in Japan, ground to a halt in January 2019 to remedy issues with Forester, Crosstrek and Impreza electric power steering units, and that cost Subaru nearly 10 days of production, corresponding to around 30,000 vehicles. Earlier, there was a 500,000-vehicle recall in Japan due to fraudulent final inspections. Automotive News also lists other recent Subaru maladies, such as a low-fuel warning recall and stop-sale for all U.S-market Outbacks and Legacys, and the earlier, global recall to repair valve springs on the boxer engines of 411,000 vehicles. This particular recall hasn't been problem-free, as there have been cases where subsequent engine failures on BRZ models have been suspected of having been caused by slapdash recall work. There is also a new, large-scale recall in the horizon for Subaru, as a brake light issue on 2008-2017 vehicles necessitates the recall of some 2.3 million vehicles. However, it's not all bleak for Subaru, as U.S. sales are going strong. The carmaker predicts 2019 will be the 11th straight record year, and U.S. retail sales climbed 7.7 percent in April, which was the 89th consecutive month with increased sales. But still, not all Subaru markets are equal: On the North American market, Subaru sold 717,000 vehicles during the past fiscal year, an enormous percentage of its total sales. News Source: Subaru via Automotive News Plants/Manufacturing Recalls Subaru

Subaru WRX STI gets all gymkhana slidey in new European ad

A good partner makes sacrifices for a significant other. They aren't always fun, but sometimes chores have to be done. Subaru's European ad for its new WRX STI clearly understands that dynamic, as it shows what to what lengths a guy is willing to go in order to get his lady some bread in time for breakfast. Of course, running errands in a turbocharged, all-wheel-drive sports sedan down picturesque roads is hardly drudgery.
The wordless ad for the WRX STI says everything you could ever want to know about the winged blue Subaru. It expertly mixes some fantastic gravel rally footage with just a bit of inspiration from Ken Block's Gymkhana videos, as well. The automaker makes the right choice of actually letting the audience hear the growly exhaust and squealing tires over the music, too.
If this was your daily route to the bakery, you'd probably be prepared for a round of the World Rally Championship within a couple of months. Scroll down to watch the Subaru ad about a very polite WRX STI owner making sure breakfast is on the table.

Junkyard Gem: 1984 Subaru GL 4WD Wagon, Colorado Stereotypes Edition

I live in Denver, which means my local junkyards are well-stocked with used-up Subarus. These days, that means mostly Outbacks from the 1995-2005 period, but sufficient 1970s and 1980s Subarus remain in service that they show up from time to time. Here, in a Denver self-service yard, is a second-generation Leone wagon, from the era when this car was called just "the Subaru" in the American market. It appears that this car's final owner named it The Little D. Right next to the rag being used as a gas cap, a Yoda-ized Steal Your Face skull. This sticker from Incredible Extracts is easy to find in and on the cars in Denver-area wrecking yards. Someone made a pretty good Hunter S. Thompson stencil for the right-hand rear side glass. Neither of the two other members of the Male Hipster Holy Trinity (Kerouac and Bukowski) are to be found here, but then those two didn't live in Colorado. Anonymous is everywhere, even the junkyard. In 1984, the GL was the top trim level of the Subaru wagon, and the MSRP on this car was $8,168. That's about 19 grand in 2017 dollars. The going rate for a hooptie '84 GL wagon in 2017 is about $250. This car has manually-actuated four-wheel-drive, rather than the center-differential-equipped all-wheel-drive you'll get with your 21st-century Subaru. This meant that drivers were supposed to use front-wheel-drive on dry asphalt and four-wheel-drive on snow or dirt, but many didn't understand the concept and tore up their tires and/or powertrains by running 4WD at all times. These cars would get you to the slopes every time, and they'd do it cheaply enough for you to afford your preferred intoxicants once you got there. This car's 34 years on the road are done, but many of its kind remain. Related video: