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Subaru puts Japanese production on pause in the wake of deadly typhoon

Subaru idled its main factory in Gunma, Japan, in the wake of the deadly typhoon that wreaked havoc on the eastern part of the country. The shutdown is tentatively scheduled to last about a week. Located roughly two hours northwest of Tokyo, the Gunma factory fell silent at the end of the morning shift on October 16, according to Automotive News. The facility wasn't directly affected by the typhoon, but some of its suppliers suffered flood damage. "These suppliers are currently working to normalize their operations with our human and material support as well, but we expect some impairment of their supply of automotive components and parts to Subaru," the firm said in a statement. It didn't name the suppliers, and it didn't identify the parts they make, but it added production should resume on October 25. About 2,500 cars leave the Gunma factory daily, Automotive News learned, so approximately 11,250 vehicles will be delayed by the shutdown.The BRZ, Forester, Crosstrek, and the WRX all come from the facility. It also makes the Impreza, though American-spec models are built in Indiana, and the Levorg, which isn't sold in the United States. Subaru confirmed to Autoblog its plant in Lafayette isn't affected by the storm, which suggests it sources parts from other suppliers. Subaru is the first car manufacturer to idle a factory in the wake of typhoon Hagibis, which killed 77 people when it touched down on October 12, but it might not be last. Suppliers normally work with several carmakers, and Toyota and Mitsubishi are reportedly keeping a very close eye on their parts inventory. Auto News Plants/Manufacturing Subaru

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 secures permit to test self-driving car in California

The list of automakers that can test their self-driving cars in California is getting less and less exclusive by the minute. Its latest addition? Subaru. The Japanese company has secured an Autonomous Vehicle Testing Permit from the state's DMV on February 9th, bringing the total number to 22. Some Subaru models already have assisted driving features thanks to their camera-based Eyesight system, such as adaptive cruise control, sway warning and pre-collision braking. However, the company is developing new capabilities meant to kick in while doing speeds of up to 40 mph, including the ability to auto-start and stop in slow traffic. Subaru also wants to offer lane switching and auto-steering around bends and curves -- semi-autonomous driving capabilities for highways -- by 2020. It's unclear what features Subaru will be testing exactly, and if they're any of these. All that's certain is that it's joining both big-name and little-known companies on California roads, like NVIDIA, Ford, Good and Baidu. This article by Mariella Moon originally appeared on Engadget, your guide to this connected life. Related Video: News Source: DMV Government/Legal Subaru Technology Autonomous Vehicles California