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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.

A closer look at the 2015 Subaru WRX

For enthusiasts, the debut of the 2015 Subaru WRX was arguably one of the more important happenings at last week's LA Auto Show. After all, the 'Rex has been one of our perennial favorite all-weather sports cars, able to offer big thrills in any clime thanks to its turbocharged engine, manual gearbox and top-notch all-wheel-drive system.
For 2015, some big changes have been made to our favorite Subie, including the removal of the hatchback body style and availability of a continuously variable transmission. Of course, there's also the new, 2.0-liter turbocharged inline four-cylinder engine, not to mention the completely revised styling.
Lots of talking points, for sure, so West Coast Editor Michael Harley chatted with Dominick Infante, national manager of product communications for Subaru USA, who promises us that this car will be the "best-handling WRX ever." As for that CVT, Infante assures us that it was "designed for a sports car" and that the company aims to change the minds of people (like us, admittedly) who have a hard time warming up to the idea of this transmission in a package like the WRX.

Next Subaru WRX and STI to go sedan only; reveal headed for LA

After a serious bit of teasing at the 2013 New York Auto Show, Subaru might be finally preparing to pull the sheets off of the production versions of the new WRX and STI. The venue, according to Automotive News, will be the 2013 Los Angeles Auto Show in November. Besides that tasty bit of info, AN has a number of other interesting ideas about the 2015 WRX.
If you've been a fan of the five-door bodystyle, don't read this - the next WRX and STI will reportedly go four-door only. We've already seen the latter's whopping great wing, a tradition we're happy to see soldering on for next-gen car. According to the AN report, power figures to be around 265 horsepower from a 2.5-liter, turbocharged, flat-four engine.
Los Angeles is still quite far off, so expect to hear more rumblings about a production WRX or STI in the coming weeks. Take a look above for our most recent batch of spy photos, and then hop down below for some images of the stunning WRX Concept that was shown at New York.