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Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive

Subaru Crosstrek Baja Racer is a glorious blue and gold liveried masterpiece

Subaru just revealed its new Baja racer, and it's the coolest one yet. The Crosstrek Desert Racer is now sporting Subaru's traditional blue and gold livery that we all know and love from the many years it was plastered on Impreza-based rally cars. It's hard not to be nostalgic on this one, and we just had to share it. This Crosstrek, which bears about zero resemblance to an actual Crosstrek, is being run in the grueling Baja 500 off-road race through the Baja California Peninsula. Crawford Performance and Grabowski Brothers Racing are running the show, hoping to improve on their second-place finish from last year. The vehicle has a 2.5-liter naturally aspirated flat-four engine built to produce 300 horsepower. It's great to see Subaru continue to expand the blue and gold livery theme to more motorsports efforts. At the 2019 Detroit Auto Show we got to see the same livery on an STI rally car destined for competition. Now this beast of a Baja racer looks ready to strike fear into the hearts of its opponents just the same. The vehicle itself is rather insect-like in nature with the suspension and lights sticking out everywhere. There's still no word on whether the team will try for the big Baja 1000, or just stick to the 500 for 2019. Regardless, it looks supremely capable, and must be an absolute hoot to drive.

Consumer Reports sneaks in early review of 2015 Subaru Outback

Subaru is taking a bit of a measured risk with its new generation of Legacy and Outback. While they ride on a slightly larger platform than before, with a revised front-end design, neither of them looks to be a radical departure from models they replace. Instead of focusing on exterior styling, the Japanese brand is trying to make the vehicles better to own with more sound deadening, improved fuel economy and more available tech. Pricing for the 2015 Outback isn't available yet, but with the 2015 Legacy pricing as a guide, it's likely a few hundred dollars more than the current model.
We just had our first stab at the new Legacy, which is slated to go on sale this summer, but Consumer Reports managed to snag an early look at the 2015 Outback in a sort of mini-review to get an idea of how the new model shakes out. Like many, we'd wager, CR isn't completely sold on the new styling, but seems otherwise moderately impressed by the upgrades. The improvements to the interior and infotainment system are especially well received by them. Naturally, though, CR notes that not everything is perfect with the high-riding wagon.
Scroll down to watch CR's preview of the new Outback and see what it thinks of this practical family hauler.