1998 Subaru Legacy Outback on 2040-cars

Auto blog

Subaru cuts annual profit outlook on strength of yen, typhoon impact

TOKYO — Subaru lowered its annual profit forecast on expectations of a stronger yen and the impact on production from a typhoon last month, driving its shares down as much as 4.5%. Japan's smallest major automaker, one fifth of which is owned by top-ranked Toyota, cut its forecast for operating profit to 220 billion yen ($2 billion) for the year ending March 2020, from a previous forecast of 260 billion yen. Subaru revised its forecast for the yen to average 107 versus the dollar over the period, from 110 previously. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases. The United States is Subaru's biggest market, accounting for about 60% of overall sales. Typhoon Hagibis forced Subaru to halt production at its factories in Gumna, north of Tokyo, for more than a week in October due to supply chain disruptions. The stoppage, which lasted until Oct. 25, resulted in lost production of 11,000 vehicles, Chief Executive Officer Tomomi Nakamura told a briefing in Tokyo on Wednesday. Hagibis was the worst typhoon to hit Japan in decades, leaving at least 80 people dead, according to national broadcaster NHK. "We have restarted production, but we couldn't return to full capacity immediately," Nakamura said. "Some of our suppliers' factories were completely submerged." Subaru also said vehicle sales rose nearly 20% in the first half of the fiscal year compared with a year earlier, driven almost entirely by an improvement in the United States amid strong demand for the Forester SUV crossover. Subaru shares were down 1% at 3,102 yen by 0440 GMT, after touching a low of 2,995.5 yen earlier.

To the end of the world in a Subaru

On a quiet beach in southern Argentina, I stood in awe facing the Desdemona, a massive cargo ship that wrecked ashore in the mid-1980s and has remained untouched for the subsequent 30 years. In the intervening time, Desdemona was not vandalized, nobody broke her down and sold the parts for scrap, and unlike what you'd expect in the United States, no one set up shop to sell memorabilia in addition to a $5-beach entrance fee. This is only one of a thousand gorgeous vistas that make up Patagonia, the southernmost part of South America and, indeed, the end of the world. I was there to drive Subarus along dirt two-track roads and gravel highways on an epic journey from El Calafate to Ushuaia. Subaru would have you believe that this sort of rugged wilderness is the natural habitat for its cars. Whether or not that is a stretch, the Subies proved to be up to the task of trekking Patagonia. But I fully expected that from the get-go. What I didn't expect was how every part of this journey – the cars, the location, the people – would combine to form one of the greatest travel experiences of my life. View 85 Photos The end of the world. Patagonia is gorgeous, vast, brilliant. And those words don't even really do it justice. The plains, the lakes, the mountains, the forests all feel like every color is more vibrant, every detail is sharper. It's like looking at the world through an Instagram feed, and then realizing that every photo has the "no filter" hashtag. The journey started on Valentine's Day, with senior video producer Chris McGraw and I flying to Atlanta, followed by a 12-hour flight to Buenos Aires. That's where we met the rest of the group, and spent a day relaxing and exploring the Argentine streets and shops. "It's like looking at the world through an Instagram feed, and then realizing that every photo has the 'no filter' hashtag." But we still weren't at our start point. From Buenos Aires, we hopped a flight to El Calafate, about 1,500 miles southwest. It's a common entrance point to Patagonia for tourists and explorers because of its proximity to the Perito Moreno Glacier, a stunning site we visited the next day. Watch our earlier update video to see more about the glacier – an ice formation three times the size of Manhattan (and growing!). If Patagonia is on your bucket list of vacation destinations, this glacier is a mandatory stop. There's a boardwalk that runs along the lakes, leading right up to the face of the glacier.

2020 Subaru WRX STI S209 Prototype First Drive Review | The best is just for us

We're about 70 miles southwest of Tokyo on the grounds of Fuji International Speedway. Yoshihide Yano puts his hand on the camouflaged carbon fiber roof of the 2020 Subaru WRX STI S209 prototype we're about to drive and smiles. "This will never make a business case," says the assistant manager of Subaru's North America Business Planning Department. "We don't want to make more than 250. The more we make, the more money we lose." From the wince of his co-workers, Yano is clearly off the script, but his statement isn't a huge surprise. Building the STI S209 is complicated and time-consuming, with most of its extensive engine, suspension and aerodynamic modifications being installed by hand at STI's small off-site headquarters just outside Toyko. Founded in 1988, Subaru Technica International is the automaker's motorsports division and employs only 120 people. It can produce just two cars a day. Subaru STI Car Show View 30 Photos And why not show off your fastest street car ever on Fuji's world-class 2.8-mile road course? Especially today, while the track is packed for its annual STI Motorsports Day, a yearly pilgrimage for the brand's faithful. The place is flooded with WRXs, BRZs, and models we don't get in America like the Levorg STI Sport, a hot rod version of its mid-size wagon. Although STI's new Super GT and Nurburgring race cars are making hot laps on the main circuit, our drive of the inexplicably camouflaged S209 (which was fully revealed at the Detroit Auto Show) is on a small half-mile road course tucked away in a remote corner of Fuji's massive acreage. And we get just three laps. 2018 Subaru WRX STI S208 View 15 Photos STI's S-Line of cars have been the brand's most capable machines since the S201 launched in 2000, but the S209 will be the first S-Line model sold in the United States – and exclusively in the United States, for that matter. It will also be the first S-Line WRX that won't be powered by a modified version of the brand's venerable 2.0-liter EJ20 engine family, which Subaru introduced in 1989. The company says the EJ20 cannot meet emissions and make more than 300 horsepower on our low-octane fuel. The fix for this is a version of the turbocharged EJ25 series, which has powered every U.S.-spec WRX STI since we got it in 2003. To create the S209, STI's engineers started by mixing together certain parts from both the S208 and the 310-hp WRX STI RA Subaru sold in America last year.