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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.

New Subaru concept crossover EV shown in walkaround video

Subaru held a technology briefing this week in Tokyo where it announced ambitious sustainability goals, but nearly lost amid the discussion of converting its fleet over to electricity was the unveiling of what appears to be an early concept version of a forthcoming battery-electric crossover. Thanks to the Japanese YouTube account LoveCars!TV!, we get a walkaround look. It appears to be Subaru’s version of the crossover EV it is jointly developing with Toyota, to be built atop a flexible platform that can accommodate multiple production vehicles from both brands. What weÂ’re shown is an athletic-looking crossover with its wheels pushed to the corners that borrows design elements, for better or for worse, from Cadillac, the Pontiac Aztek and the Tesla Cybertruck. Up front, the crossover borrows and exaggerates CadillacÂ’s signature squared-off corners and deep fog-light scoops that also reminds us of InfinitiÂ’s Q Inspiration concept from the 2018 Detroit auto show. It opts for narrow LED headlamps, and it notably omits any aesthetic concession to even a faux grille, save for a hexagonal shape outlined by the panel seams. Coupled with the black cladding on the lower bumper, the crossover's face has a certain Batman-logo shape to it. Moving around to the side, we see heavy black cladding — it doesn't appear to be standard plastic, since it reflects light — around the wheel wells, lending them a semi-octagonal shape that evokes the strongest comparison to the polarizing Cybertruck. Coupled with some interesting side creases, the cladding also gives the appearance that the wheel wells bulge out, and that the doors pinch inward, more than they probably do in reality. There are also no door handles or brakes, the side mirrors are rearview cameras and the windows are blacked out, so thereÂ’s nothing to divine about the interior and how far along that is in conceptualization. In back is where things get especially weird and Aztek-like, with a blunt and upright rectangular body panel making up the tailgate underneath a generously long, sloping rear window. ItÂ’s beveled at the top to tuck underneath the rear LED light bar, which stretches the length of the glass, and curved on each end to integrate with the sides. The LED treatment also dives down 90 degrees from the horizontal rear bar and then makes another sharp 90-degree jag to bracket the rear panel in hard-angled brake lights.

Subaru recalls 100K turbocharged models for fire risk

The Basics: Subaru is recalling a total of 100,127 turbocharged cars over a fire risk. The affected vehicles include the 2007 to 2009 Subaru Legacy and Outback, 2008 to 2014 Impreza, and 2009 to 2013 Forester. All of the cars are equipped with the 2.5-liter turbocharged four-cylinder engine. The Problem: The turbocharged vehicles have a faulty relay that could cause the secondary air injection pump to fail. If the relay fails, the pump would work continuously, possibly overheat, and melt, increasing the risk of a fire. Injuries/Deaths: None have been reported. The Fix: Subaru dealers will replace the defective secondary air injection pump relay at no charge. If you own one: Subaru will notify affected owners to schedule a fix. Owners can also call Subaru's customer service line at 1-800-782-2783 to confirm if their vehicle is affected. Related Video: News Source: National Highway Traffic Safety Administration Government/Legal Recalls Subaru Crossover Hatchback SUV Sedan