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Subaru profit climbs 48% on strong crossover sales in first quarter

TOKYO — Subaru reported a 48% increase in first-quarter operating profit on Monday as global sales grew, led by demand for the Ascent and Forester SUVs in the United States. The smallest of Japan's major automakers posted an operating income of 92.2 billion yen ($870 million) for April-June, versus 62.1 billion yen a year earlier and an average estimate of 65.6 billion yen from eight analysts polled by Refinitiv. Sales in the United States, by far Subaru's biggest market, rose 20%. It accounts for about 60% of Subaru's overall sales. The maker of Legacy sedans and Forester SUV crossovers maintained its forecast for operating income at 260 billion yen for the year to March 2020, up 45% from a year earlier. The previous fiscal year was marred by a string of recalls, production stoppages and inspection improprieties that cut the automaker's earnings in half. Subaru reiterated its annual forecast for global sales of 1.06 million vehicles. It also left unchanged its assumption that the yen will average 110 against the dollar over the course of the fiscal year, versus 111 last year. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases.

Subaru VIziv GT joins the Gran Turismo Vision clique

The next vehicle in the Vision Gran Turismo series has poked its nose out as part of a new teaser video and it comes from all-wheel-drive specialists Subaru.
Based on the Viziv Concept, the Viziv GT Vision Gran Turismo gets the same sort of racy treatment that we've seen on the other VGT cars, with big wheels and aggressive body work. The hood is vented and there's a whopper of a rear spoiler in place, based on what we can see in the video. We aren't sure what changes there are to the concept's diesel-hybrid powerplant, although we're sure all the details will leak out eventually.
Until then, take a look at the teaser video and let us know what you think by posting down in Comments.

Junkyard Gem: 1980 Subaru 4WD Hatchback

Living in Colorado, where they might as well issue you a Subaru at the state line, I see plenty of worn-out Pleiades-badged cars in the local wrecking yards. Most of them fall into the 15-to-25-year-old age group, but I'll spot the occasional Malaise Era Subaru, from the era when the Leone was sold in North America as, simply, "the Subaru." Here's a 1980 base-level hatchback with the four-wheel-drive option, spotted in a yard just outside of Denver last month. In 1980, the US-market Subaru could be had in three trim levels (STD, DL, and GL), and as a coupe, sedan, hatchback, or wagon (the pickup version was known as the BRAT). This STD hatch is the cheapest possible Subaru available in 1980 with four-wheel-drive, and I'm just disappointed that they didn't put STD badges on the base-level cars. The driver had to choose between front- and four-wheel-drive by hand, using this lever. If you left the car in 4WD for long periods on dry pavement, you'd wear out the tires and/or break something. By 1997, all US-market Subarus had full-time all-wheel-drive, with no driver decisions about driven wheels needed. Subaru offered an automatic transmission and a five-speed-manual for these cars, but just about all buyers of late-1970s/early-1980s Subarus went with the cheaper four-on-the-floor manual. When you see a junkyard car with the keys still present, you can assume that the car ended up here after being totaled by an insurance company or traded in on a new car. A battered 39-year-old Subaru won't get much interest at the sort of auction these cars go to, and so the junkyard ends up being the next stop. The owner's manual was still in the glovebox, and of course I took at home and scanned a few pages (look in the gallery, above, for those scans). The folks at Subaru PR were interested in this book for their archives (they don't have one), so I'll make sure it gets to them soon. Rodent bedding and poop fill the engine compartment, and the employees of this yard marked the car as a hantavirus biohazard. I'd wear a mask if I needed to pull the engine from this car, because hantavirus is a real problem in Colorado and has a scary 35% mortality rate. Speaking of the engine, you're looking at 67 mighty horsepower here. With the car scaling in at about 2,200 pounds empty, drivers needed patience on uphill freeway onramps (actually, they needed patience when driving anywhere). By the standards of Japanese cars of this era, the rust problem doesn't look too bad.