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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

Subaru gives Aussies BRZ Sports Pack

Well, it might not be exactly the Subaru BRZ STI that we've all been waiting for, but Australian market shoppers are now going to have the option of adding some STI flavor to their coupe, with this new BRZ S.
Critically, the Sports Pack upgrades included in the S specification do not involve forced induction of any kind for the BRZ's 2.0-liter flat-four mill. Instead, the BRZ S will offer a novel flexible strut tower brace and a coilover suspension to aid its already impressive handling prowess. Visually, the car gets a new aero kit with lowered skirts and a new front and rear splitter, as well as some mean-looking, 17-inch black wheels. Inside, a new gearlever and a STI-branded starter button will call out the S model.
The S package can be ordered on a new BRZ and fitted at the dealer, or added to an existing customer car. When ordered new, the BRZ S adds $7,995 Australian - about $7,275 US including installation - to the price of the six-speed manual car, or $7,195 Australian ($6,547 US) for the six-speed automatic transmission model. That's a pretty fat wedge of cash, but it's worth bearing in mind that Australians generally pay significantly more for new cars than we do here in the States. For instance, the BRZ starts at $37,150 Australian, nearly $34k US. Even accounting for regional equipment differences, that's a lot more than the BRZ's $26,265 as-delivered base MSRP here in America.

Subaru executive casts doubt on manual transmission future

Some disconcerting news for Subaru fans has come out from the Geneva Motor Show. Subaru's U.K. managing director told Auto Express that he doesn't see the manual transmission as having a future at the automaker. He explained that the company is really focusing on safety, and in turn Subaru's Eyesight technology. As a refresher, that system uses stereo cameras to enable features such as automatic emergency braking, lane keep assist and adaptive cruise control. The feature isn't currently available on manual-equipped Subarus, and the executive said he wasn't sure if the system was compatible. And with Subaru's push for safety and Eyesight, he said that continuing to offer manual cars without the system could undermine that push. This sounds dire at first, but we shouldn't panic yet. First, this is just an executive for Subaru's U.K. branch, not for the global company or the U.S., and car companies don't have the same offerings everywhere. For example, the Crosstrek is only offered with a CVT in Europe, but here in America – land of the free, home of the clutch – Subaru offers a six-speed manual. So, while it is possible that certain regions will have reduced or no manual options, that doesn't mean it would be across the board. View 22 Photos And even if Subaru decided it would phase out manual transmissions on most of its mainline cars, as it did with the Legacy, we can't imagine the company abandoning the transmission for its performance cars. WRX and STI fans would riot in the streets, possibly on their way to buy a next-generation Focus RS or Golf R, and the BRZ, a car built around the idea of driver engagement, wouldn't survive in a market with the Miata. Subaru may want to improve safety, but they're still a for-profit company, and sales of its performance cars would surely tank without a manual option. One more reason not to fret is that, while Subaru doesn't currently have a manual-compatible suite of semi-autonomous safety features, that doesn't mean it's impossible. As it so happens, Mazda offers low-speed automatic emergency braking as a standard feature on all its models in every trim. Mazda also has higher-speed emergency braking, lane keep assist and adaptive cruise control as options, and they are compatible with manual transmission cars. You can order up a top trim Mazda3 Grand Touring with a manual transmission right now. Keeping all this in mind, we think it's highly unlikely that Subaru will abandon the manual transmission.