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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.

Subaru calls Forester Ultimate Customised Kit Special edition 'an unfortunate situation'

UPDATE: Subaru of America reportedly found it necessary to disavow itself from the Forester Ultimate Customised Kit Special edition that was displayed at this year's Singapore Motor Show. According to The Drive, the automaker sent a letter to its American dealership network to explain that it "had nothing to do with this" and that "it obviously goes without saying that this car will not be available in the United States market." Lead image courtesy of imgur. Subaru likely brought several serious concepts to this year's Singapore Motor Show. We sincerely hope that this is not one of them.  Meet the Forester Ultimate Customised Kit Special edition (little "e"). If you're old enough to be on the Internet, you certainly know exactly where this is going, and it's not anywhere appropriate.  In this lighting, it's hard to tell, but the F***S edition appears to be finished in Subaru's World Rally Blue, and the pin-striping is very likely STI's signature cherry blossom pink, but we frankly cannot tear our eyes away from the podium, which is emblazoned with the custom Forester's name. As Top Gear Philippines points out, it's otherwise a fairly generic show car. From the body kit that gives it a low-slung attitude to the custom paint work, nothing about the F***S edition appears out of the ordinary. It's even rocking a set of 20-inch Enkei wheels over yellow brake calipers.  We're not sure what exactly is going on under the hood, but we wouldn't be surprised to find the normal host of bolt-on factory and aftermarket power-adders, or maybe even a full-blown STI powertrain just for extra cred.  Inside, it has yet more of the trappings of a run-of-the-mill SEMA build. A huge touchscreen up front controls a custom audio system backed up by Focal amplifiers and a subwoofer. There's custom blue ambient lighting in the front cabin and a set of tablet-style monitors for rear passenger entertainment.  The execution leads us to believe that either its builders had no clue, or they simply gave no... well... you know. 

6 best cars for $5,000

Looking for a great used car but only have a few thousand bucks to spend? Check out our 6 favorite used vehicles that you can get for around $5,000 or less. 1. 2004-2006 Subaru WRX The Subaru Impreza WRX offers a lot of what you might want in a vehicle. A 2L turbocharged engine gives 227 horsepower and it gets 27 mpg on the highway. 2. 2006-2015 Mazda5 The Mazda5 never got the sales it deserved. It was affordable and more maneuverable than most vehicles, but it never took off. It was based on the Mazda3, and felt like it as well... just a bigger version. If you're lucky, you'll be able to locate one with a manual transmission. 3. 1990-1997 Mazda MX-5 Miata A car that's praised for rewarding the driver. The shifter is sublime, and the controls are light and accurate. The 1.6-liter engine that makes 115 horsepower or a 1.8-liter that makes 128 horsepower are our preferred versions. 4. 2009-2013 Honda Fit Beside being cute, it's supremely practical and great in the city. It manages to be pretty entertaining to drive, and let's not forget it's a hatchback. 5. 1987-2006 Jeep Wrangler Yes, it's possible to get a well-loved Jeep Wrangler with about 100,000 miles on the odometer. In many ways, a Wrangler is perfect for the snowy winters with its unrivaled 4x4 capability. An SUV, convertible and icon, all in one? What more could you ask for? 6. 2002 Chevy Silverado Truck lovers, we have you covered. We love the Chevy Silverado with a 5.3-liter V8 engine and a 4-speed automatic transmission. It makes a great second car, especially if you already have a fuel efficient vehicle around the house. What would you buy for $5,000? Honda Jeep Mazda Subaru Autoblog Minute Videos Original Video wrangler mazda5