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Junkyard Gem: 1988 Subaru GL 4WD Sedan

While Subaru kept the hatchback version of the second-generation Leone available in North America all the way through the late 1980s, the third-generation sedans and wagons went on sale here in 1985. Today's Junkyard Gem is a loaded '88 4WD sedan, found in thoroughly worn-out condition in a junkyard next to Pikes Peak in Colorado. From the late 1970s through the 1980s, Subaru named each of their North American Leone models "The Subaru," adding trim levels as placeholders for model names. The GL was the top-of-the-line version. This confused everybody, so these cars became Loyales starting in the 1990 model year. This car has the optional automatic transmission and Subaru's first full-time four-wheel-drive system (we'd call it all-wheel-drive by today's definition), available starting in 1988. You hit the red button on the shifter to switch between front- and all-wheel-drive, and if you drove on dry asphalt in the 4WD setting you didn't tear up the tires and/or drivetrain. Prior to this system, four-wheel-drive Subarus had a big lever to switch between drive modes, and you'd damage stuff by using 4WD on dry pavement. Adding to the luxury, this car came with factory air conditioning. A/C was still considered a frivolous luxury by many small-car shoppers in the late 1980s, but that attitude faded as the cost of refrigerated air went down. This car turned well over 200,000 miles during its 32-year career. That doesn't quite measure up to the kind of final odometer readings I see on four-wheel-drive Toyota cars of this era, but it's still excellent for its time. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. In the end, the rust finally got this car. The fenders sway in the mountain breezes now. The final owner appears to have been a huge fan of high-potency THC concentrates, available legally all over Colorado. We can only hope they didn't drive high, because shatter hash and old Subarus don't mix. In addition to the high miles and rust, the scent of overflowing ashtrays, sweat, clouds of vaped cannabis, and decomposing interior plastics knocked the resale value of this car down from $400 to about $80, despite the sale-enhancing automatic transmission. The idea of a Subaru GL with power windows would have seemed laughable just a few years earlier than 1988. This car could be purchased with a turbocharged engine, but this one just has the aftermarket badge upgrade.

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

Should Subaru have a premium brand?

A lot of people love Subarus, and that audience is only getting bigger. Subaru sold 647,956 vehicles in the U.S. in 2017, up from 615,132 units in 2016; 513,693 in 2012; and 187,699 in 2008. You get the idea. It's a relatively small brand, but a growing one. It's also one of the top brands in terms of customer loyalty, and in terms of conquest sales. From Q2 2015 to Q2 2016, Subaru gained 3.5 customers from other brands for every customer it lost. Recently, Riley, a listener to the Autoblog Podcast, wrote in and asked why Subaru doesn't have a luxury brand. Reading the email, neurons began firing immediately, and a whole bunch of new thoughts rushed in at once, mingling with old data in my brain. Indeed, why doesn't Subaru have its own luxury brand? My initial conclusion was that it just didn't make sense for the brand. It's too small of a company to warrant another brand. The higher-end offerings — namely top-trim Ascents — are probably the ceiling at the moment. If those can sell consistently, then maybe it would be time to toy with luxury-leaning models the way Hyundai did before spinning off Genesis (and perhaps adopt a wait-and-see attitude with regard to that potential competitor.) A luxury brand might dilute the value of Subaru's mainstream offerings, giving it the look of a budget brand, but luxury models within the brand could do the opposite. ... Unless ... What if Subaru's luxury brand was all electrified? Subaru is a company that is genuinely concerned with sustainability and environmental issues. Famously, its factories are zero-landfill facilities, and the company takes part in a multitude of environmental initiatives both on its own and with various partners. This mirrors the values of a large part of Subaru's customer base, who have earned a reputation as outdoor adventurers who love nature — and dogs. It's no surprise to see Subaru overrepresented on the roads of Denver, Portland, Ore., and Burlington, Vt. Subaru doesn't offer any plug-in models yet, but they're in the works. As of now, we can expect them to be based on current nameplates. What if Subaru gave its upcoming Crosstrek PHEV the luxury treatment and a new brand name ("Pleiades" would be the easy grab). Sure, Subaru retains customers really well already, but what happens when people outgrow Subaru? At least they have the option of the Ascent, but I'm interested to see how many Subaru owners move on to luxury brands (I'm in the process of finding those answers).