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Subaru cuts annual profit outlook on strength of yen, typhoon impact

TOKYO — Subaru lowered its annual profit forecast on expectations of a stronger yen and the impact on production from a typhoon last month, driving its shares down as much as 4.5%. Japan's smallest major automaker, one fifth of which is owned by top-ranked Toyota, cut its forecast for operating profit to 220 billion yen ($2 billion) for the year ending March 2020, from a previous forecast of 260 billion yen. Subaru revised its forecast for the yen to average 107 versus the dollar over the period, from 110 previously. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases. The United States is Subaru's biggest market, accounting for about 60% of overall sales. Typhoon Hagibis forced Subaru to halt production at its factories in Gumna, north of Tokyo, for more than a week in October due to supply chain disruptions. The stoppage, which lasted until Oct. 25, resulted in lost production of 11,000 vehicles, Chief Executive Officer Tomomi Nakamura told a briefing in Tokyo on Wednesday. Hagibis was the worst typhoon to hit Japan in decades, leaving at least 80 people dead, according to national broadcaster NHK. "We have restarted production, but we couldn't return to full capacity immediately," Nakamura said. "Some of our suppliers' factories were completely submerged." Subaru also said vehicle sales rose nearly 20% in the first half of the fiscal year compared with a year earlier, driven almost entirely by an improvement in the United States amid strong demand for the Forester SUV crossover. Subaru shares were down 1% at 3,102 yen by 0440 GMT, after touching a low of 2,995.5 yen earlier.

Ford tumbles to second worst in Consumer Reports reliability survey, list dominated by Japanese [w/video]

It's no secret that MyFord Touch has had its share of problems since being introduced, but the most recent reliability survey from Consumer Reports shows just how much this infotainment system has affected Ford. Just two years ago, the automaker was in the top 10 for the institute's reliability rankings, but since then, it has tumbled to the second-lowest rung just above dead-last Jaguar. In addition to MyFord Touch, CR also attributes a handful of new products that have had issues right out of the gate.
Compiled from 1.2 million subscriber surveys, this year's auto reliability survey heavily favors Japanese automakers, with eight of the 10 spots hailing from Japan. Toyota brands grabbed the top three spots (Scion, Toyota and Lexus - in that order) with Mazda, Subaru, Honda and Acura filling the next four spots. The only non-Asian automaker cracking the top 10 was Audi at number eight.
Audi climbed a total of 18 spots from last year, and Cadillac and GMC round out this year's top gainers breaking into the top 15. Helping Cadillac's upward movement, the CTS Coupe was named the most reliable domestic car. Lincoln, Volvo and Chrysler join Ford on this year's biggest loser list.

Subaru recalling 32K Imprezas for potential airbag fault

Following a preliminary evaluation by the National Highway Traffic Safety Administration in April 2015, Subaru is recalling 32,400 examples of the 2012 Impreza sedan and hatchback to repair the Occupant Detection System. The affected vehicles have production dates between April 21, 2011, and February 16, 2012. However, the WRX and STI are excluded from this campaign because they use a different part. The Impreza's problem concerns the front passenger seat's Occupant Detection System. In these models, the part uses capacitance to determine if someone is present and activates the airbag. According to the documents submitted to NHTSA (as a PDF), if the person sitting there uses a device plugged into the accessory outlet or touches an electrically grounded part like the metal seat adjuster, the ODS recognizes an increase in capacitance. It can then deactivate the airbag. Obviously, this could be a hazard in a crash, but there would be a warning light showing the safety device as off. To solve the problem, dealers will install a modified Occupant Control Unit. The initial investigation was prompted after 26 complaints to NHTSA about the ODS not working properly. In 2012, Subaru also issued a technical service bulletin that attempted to repair the issue. Related Video: RECALL Subject : Front Passenger Air Bag may not Deploy Report Receipt Date: JUL 01, 2015 NHTSA Campaign Number: 15V419000 Component(s): AIR BAGS Potential Number of Units Affected: 32,400 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU IMPREZA 2012 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain 2012 model year Subaru Impreza 4-Door and Station Wagon vehicles (except WRX/STI models) manufactured April 21, 2011, to February 16, 2012. In the affected vehicles, the Occupant Detection System (ODS) may deactivate if a front seat passenger operates a device that is plugged into the power outlet such as a music player or cell phone, or touches a metal part of the vehicle such as the forward/rearward seat adjuster lever. CONSEQUENCE: If the ODS deactivates, the front passenger air bag will be turned off and the front passenger air bag will not deploy in the event of a crash, increasing the risk of injury to the seat occupant. REMEDY: Subaru will notify owners, and dealers will replace the Occupant Control Unit with a modified one, free of charge. The manufacturer has not yet provided a notification schedule.