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2021 Subaru Crosstrek is finally getting a more powerful engine

Subaru will address one of the Crosstrek's biggest shortcomings by making a 2.5-liter flat-four engine available in time for the 2021 model year. It will power the range-topping Limited trim and a new Sport-badged model. You asked, and the Japanese company is listening. Tom Doll, the CEO of Subaru's American division, told industry trade journal Automotive News that many customers have complained about the 152-horsepower, 2.0-liter four-cylinder engine that has powered the current-generation Crosstrek since its launch. Put bluntly: It's slow.  "One of the things that our customers were telling us about the Crosstrek was it was maybe a little underpowered with the 2.0-liter engine. Well, the 2.5-liter engine will solve that problem," he announced at a dealer meeting. While he stopped short of divulging technical details, Subaru has a pair of 2.5-liter flat-fours to choose from in its parts bin. The first is a turbocharged unit rated at 310 horsepower and 290 pound-feet of torque when it's thumping under the WRX STI's hood. Don't get your hopes up — that's not what's going in the Crosstrek, sadly. Nothing is official, but it's reasonable to assume Doll was referring to the naturally-aspirated four available in the Forester, the Outback, and the Legacy. It delivers 182 horsepower and 176 pound-feet of torque in all three applications. Subaru will usher the 2.5-liter into the Crosstrek range by expanding it with a new trim level called Sport. The range-topping Limited will also be offered with the bigger engine. Pricing information hasn't been announced yet, and neither has availability, but the peppier Crosstrek will likely arrive later in 2020 as a 2021 model. The Crosstrek is a jacked-up Impreza with a more rugged design, so it stands to reason the 2.5-liter fits in both models. There's no word yet on whether the equally underpowered Impreza will receive it. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.    

Subaru posts 15.7% rise in fill-year operating profit

TOKYO — Subaru on Monday posted a 15.7% rise in annual operating profit in the fiscal year that ended in March as it recovered from a raft of product recalls last year, but warned that sales of its cars would take a hit from the coronavirus outbreak. Profit rose to 210.3 billion yen ($1.96 billion) for the year just ended, from 181.7 billion yen a year earlier under international financial reporting standards. It exceeded a consensus estimate of 204.7 billion yen profit drawn from 17 analysts polled by Refinitiv. Global automakers are struggling to recover from the coronavirus, which has pummeled car sales as shelter-in-place orders in many countries clobbered car demand, while plant workers had been left unable to commute to work. Though Subaru and its rivals have begun to restart vehicle factories, anaemic demand, supply chain disruption and social distancing measures at factories are expected to limit output in the coming months. "We saw a limited impact of the coronavirus on our results for the year just ended," Chief Executive Tomomi Nakamura told a teleconference. "But although we have resumed production this month, we are only operating one shift in Japan, and the pace of U.S. output has slowed significantly ... we see many uncertainties related to the virus." As a result, the maker of the Outback and Forester SUV crossovers declined to give an earnings forecast for the current business year, while it slashed its year-end dividend for the year just ended by 61% to 28 yen per share. Some analysts believe industry-wide global auto sales could slump by a third this year and that any recovery will be slow and patchy as job losses and reduced incomes weigh on consumer spending. Subaru, which earns two-thirds of its vehicle sales from the United States, acknowledged that it may take a hit in the coming months as its biggest market struggles get the coronavirus pandemic under control. The automaker saw a 3% rise in global vehicle sales in the year to March to 1.03 million units, bouncing back from last year, when a defective steering component and measures to improve inspection tests had stopped output for two weeks at its sole assembly plant in Japan. The process to restart its U.S. plants would take time, Subaru said, and it expects to produce only around 5,000 units this month, a fraction of last year's 40,000. The virus would result in a global production hit of around 150,000 units, it added.

Subaru, like Nissan, admits improper checks on Japan cars, expects recalls

TOKYO — Subaru on Friday said it had failed to follow proper inspection procedures for vehicles for the domestic market, an issue likely to result in a product recall and adding to a list of compliance problems at Japanese companies. The automaker said for more than 30 years, final inspections of new vehicles at its main Gunma complex north of Tokyo were sometimes conducted by inspectors who were not listed as certified technicians, violating transport ministry requirements. The automaker said it was therefore considering recalling about 255,000 vehicles including its Legacy, Forester and Impreza models produced at the complex and sold at home, at a cost of around 5 billion yen ($43.86 million). Chief Executive Officer Yasuyuki Yoshinaga at a news conference said inspectors in training for certification to sign off final checks had been approving the checks under the names of their trainers, a process the automaker followed for over 30 years without realizing it did not meet ministry requirements. "The final inspection process is very important and we acknowledge that we did not meet requirements," Yoshinaga said. "It's always been my goal to make this company good. This issue shows that we're not there yet." Subaru said it would report details of an internal investigation to the ministry on Monday, and that it needed to better communicate requirements to workers. "It's always been my goal to make this company good. This issue shows that we're not there yet." The revelation followed a similar oversight at Nissan, while Kobe Steel has been grappling with a data fabrication scandal, tarnishing Japan's reputation for quality control. Yoshinaga said the issue was discovered during an internal inspection ordered by the ministry after Nissan late last month revealed similar violations on inspections governing vehicles sold in Japan at its domestic factories. The ministry requires certified technicians to sign off on paperwork for final inspections for vehicles produced in Japan for the domestic market. The extra step does not affect product quality and is not needed for vehicles exported overseas. Toyota, Honda and other Japanese automakers on Friday said they have reported to the ministry that they found no issues with their respective inspections. Subaru shares closed down 2.6 percent on Friday after falling more than 3 percent following media reports of the improper inspections. The broader market rose 1.2 percent.