2016 Subaru Forester 2.5i Limited on 2040-cars

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Subaru posts 15.7% rise in fill-year operating profit

TOKYO — Subaru on Monday posted a 15.7% rise in annual operating profit in the fiscal year that ended in March as it recovered from a raft of product recalls last year, but warned that sales of its cars would take a hit from the coronavirus outbreak. Profit rose to 210.3 billion yen ($1.96 billion) for the year just ended, from 181.7 billion yen a year earlier under international financial reporting standards. It exceeded a consensus estimate of 204.7 billion yen profit drawn from 17 analysts polled by Refinitiv. Global automakers are struggling to recover from the coronavirus, which has pummeled car sales as shelter-in-place orders in many countries clobbered car demand, while plant workers had been left unable to commute to work. Though Subaru and its rivals have begun to restart vehicle factories, anaemic demand, supply chain disruption and social distancing measures at factories are expected to limit output in the coming months. "We saw a limited impact of the coronavirus on our results for the year just ended," Chief Executive Tomomi Nakamura told a teleconference. "But although we have resumed production this month, we are only operating one shift in Japan, and the pace of U.S. output has slowed significantly ... we see many uncertainties related to the virus." As a result, the maker of the Outback and Forester SUV crossovers declined to give an earnings forecast for the current business year, while it slashed its year-end dividend for the year just ended by 61% to 28 yen per share. Some analysts believe industry-wide global auto sales could slump by a third this year and that any recovery will be slow and patchy as job losses and reduced incomes weigh on consumer spending. Subaru, which earns two-thirds of its vehicle sales from the United States, acknowledged that it may take a hit in the coming months as its biggest market struggles get the coronavirus pandemic under control. The automaker saw a 3% rise in global vehicle sales in the year to March to 1.03 million units, bouncing back from last year, when a defective steering component and measures to improve inspection tests had stopped output for two weeks at its sole assembly plant in Japan. The process to restart its U.S. plants would take time, Subaru said, and it expects to produce only around 5,000 units this month, a fraction of last year's 40,000. The virus would result in a global production hit of around 150,000 units, it added.

Subaru takes another look back, this time at the 2004 WRX STI

Here we have the followup to the rally-mimicking Impreza 22B STI that Subaru recently chronicled in its Vintage Garage series: the 2004 Impreza WRX STI. Displacement for the boxer four was upped from 2.2 liters to 2.5, and after noticing how many buyers had installed larger turbochargers on their WRXs, Subaru decided to bolt on one in-house. That gave the final product 300 horsepower and a 0-to-60 mile-per-hour run of just 4.6 seconds.
It was stiffer, it's body from nose to front doors was penned by Peter Stephens, he of the McLaren F1, it came with a driver-controlled center differential, driver-activated cooling spray for the turbos and 300 pound-feet of torque. This is a curio from a time when, after a new WRX STI came out, you started poring through magazines to see how the Mitubishi Evo was going to respond. You can find out more about it in the video below.

Subaru investigation confirms vehicle data tampering in Japan

Subaru has admitted that alteration of fuel-economy and emissions data took place in its Gunma and Yajima manufacturing plants between December 2012 and November 2017. Some 900 vehicles were affected by data tampering, which Subaru says was done in the vehicles' final inspections by factory-floor inspectors. In a report, Subaru says "non-conforming" final vehicle inspections were identified in late 2017, and that the Japanese Ministry of Land, Infrastructure, Transport and Tourism demanded that Subaru undertake an internal investigation of the matter. Almost 7,000 vehicles were subject to inspection in the investigated time period, and the measurement equipment retained test data for some 6,500 of those. It showed that 903 vehicles had had their data "inappropriately altered," partially so that average data values would meet quality control standards. Subaru says that the decision to do this was made among vehicle inspectors and their foremen. As Subaru's statement reads: "Inspectors engaging in sampling of fuel economy and emissions were instructed by their seniors that, if results for each vehicle did not meet such standards, measurement values should be altered to those that meet such standards, and, according to such instructions, the inspectors altered measurement values. [...] Even if there were no problems in comparison with the internal quality control standards, inspectors altered measurement values with the intention of reducing variance in measurement values in order to avoid questions from the Group Chiefs and the Section Chief on such variance. It should be noted that alterations were made not only to make results better, but also to make them worse." It appears that everything was done to keep the average values right. Subaru adds: "Although the relevant laws and regulations stipulate that, in certain limited cases, measurement values could be altered in order to adjust errors caused by measurement equipment, inspectors misunderstand such adjustment method because of deficient internal rules and inadequate training. Inspectors altered measurement values by adjustment methods not stipulated in the relevant laws and regulations, without understanding that their methods were inappropriate." Test equipment did not contain data from earlier than 2012, but Subaru suspects such tampering took place as long ago as 2002. However, the matter will not result in recalls.