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Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive

2013 Subaru WRX STI Special Edition

Despite my best efforts to convince myself otherwise, I think I'm finally getting too old for this car. I remember the days when I would go ga-ga over the winged Subaru WRX STI sedan, my inner boy racer caring only about its turbo thrills and not taking into account things like price, packaging or interior quality/comfort. Even now, as someone who generally appreciates offbeat color choices, I'm having a hard time getting behind the Tangerine Orange paint of this Special Edition tester, a unique version of the STI sedan limited to just 100 cars. (West Coast Editor Michael Harley recently spent time in the Special Edition WRX sedan, which will see a production run of 200 units.)
To give it The Full Halloween, this limited-edition Subie comes with black accents on its mirrors and fender badges, not to mention black alloy wheels and special graphics on the rocker panels. Special Edition cars also come standard with foglights, and there are orange accents found throughout the interior. All in, this flashier Subaru will set you back $34,795 plus $700 for destination, or $500 more than the standard version.
No, $35,000 isn't chump change, and many will argue that there are far better vehicles to be had at that exact same price point. And while my aging brain is beginning to think more toward that side of the rational thought spectrum, there's still a lot about this car that makes my more youthful self endlessly happy.

Catch the rally bug in one easy step at Wales Rally GB

You should go watch a rally. Yes, you. And by "a rally," I mean pretty much anything that could be considered a rally. Is there a grassroots rallycross event near you featuring some $500 beater Subarus mucking about in a field? Go to that. Or a full-blown WRC event. Set your coffeemaker to kick out some extra-potent brew, because you'll probably have to wake up early and drive for a bit to see something. But trust me, it'll be worth it. In Europe, with hundreds of events concentrated in a relatively small geographical area, in all sorts of environments (snow, forest, dirt, you name it), this is a lot easier. North America is huge. Your TV is closer, your couch is comfortable. That's the challenge for hooking new rally fans in America. So, why get off your tail? I travelled to Wales, the tiny windswept country on the western edge of Great Britain, to find out. First, we stopped by David Higgins' rally school, parked at the top of a sheep-studded ridge in the middle of nowhere. This was a two-part trip. The first bit was a visit to David Higgins' rally school, parked at the top of a sheep-studded ridge in the middle of nowhere. The second part was the main event: watching the headline rally event in the UK – WRC Wales Rally GB – in what amounted to a tropical storm at winter temperatures. Despite the challenges, it was one of those trips that left me smiling the whole time. At the Higgins Rally School, we had a very abbreviated experience, essentially the highlights of a multi-day course condensed into a few short hours. The first was learning how to do J-turns on mud, in an old UK-market Ford Escort ... with right-hand drive, and so, a left-hand manual shift, which made it much harder to nail the technique with the "wrong" hand. Then, it was off for a lap with an instructor in the passenger seat in a rear-drive-converted Subaru Impreza WRX – flying through gravel, mud, within spitting distance of piles of logs. That was exhilarating. Or at least, it was, until the ride-alongs with the pros. Jimmy McRae, a storied driver and father to the late and even more storied Colin McRae, was behind the wheel. The car was an early 1990s Prodrive-built Legacy, a real works car, and it made demonic noises as McRae flew through the woods, mostly sideways.