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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

Day 1: Arrival in Buenos Aires | Subarus in South America

I'm writing this at 1:00 AM on Tuesday from my hotel room in Buenos Aires, Argentina. I've had maybe three hours of sleep since I woke up on Sunday morning. As the locals say, estoy agotado. But I'm also stoked. Because later today, I'll be in Patagonia. Holy crap. As senior producer Chris McGraw explains in the video above, getting to Patagonia is no easy task. We flew from Detroit to Atlanta (two hours), and then Atlanta to Buenos Aires (ten hours). Rather than continuing right away, we met up with the rest of our group of automotive journalists and Subaru reps, explored the city a little, and had a lovely dinner. It's funny, neither Chris or I have seen a single Subaru on the trip just yet, but that'll all change tomorrow when we meet our fleet of Crosstreks, Foresters, and Outbacks in El Calafate. I'm really excited to share this whole experience with you, day by day. Be sure to follow along on social media – Chris and I will be posting to Autoblog's Facebook, Twitter, and Instagram channels. We'll have some bonus stuff on our personal accounts (@stevenewing and @thequikdraw), too. Subaru Crossover Off-Road Vehicles Videos patagonia autoblog in patagonia

Subaru Impreza gets smarter, safer and sharper in Japan

Subaru quietly gave the sedan and hatchback variants of the Impreza a mid-cycle update in Japan. Both body styles now wear a sharper front-end design, and they receive additional tech features. The current, fifth-generation Impreza made its global debut at the 2017 New York Auto Show. The 2020 model introduced online in Japan stands out with a revised front fascia characterized by a wide air dam that stretches the entire width of the bumper, chrome-look L-shaped trim on either end of it, and a revised grille. The changes made to the rear fascia are largely limited to tweaked lights. All told, you need to be an eagle-eyed car-spotter to tell the face-lifted model apart from its predecessor. Buyers seeking a sportier Impreza will be disappointed, Subaru is still taking its time developing the next WRX, but those who want a more high-tech car that helps them drive will be thrilled. Every Japanese-spec Impreza regardless of trim level is now equipped with EyeSight Touring Assist, a suite of electronic driving aids that handles accelerating, braking and steering in a wide range of conditions. These features don't make the Impreza autonomous in any way, and the driver still needs to stay focused on the road ahead, but they help when driving becomes tedious. There are other, more minor upgrades on the menu. The door mirrors now tilt down when the driver selects reverse, for example, and Subaru added a front-view camera.  In Japan, the Impreza carries on with either a 1.6-liter flat-four rated at 115 horsepower, or a 2.0-liter flat-four with 154 horses on tap. The entry-level model is front-wheel drive, surprisingly, but all-wheel drive is standard on higher trims. Regardless, both engines shift through a continuously variable transmission (CVT) that offers seven pre-programmed virtual gears. The Impreza lost its manual transmission in its home country years ago, though the company's American division continues to let buyers give a shift. Subaru hasn't announced plans to make similar changes to the American-spec model and tells us "it's too early for us to release information" about that, but it's not too far-fetched to speculate we'll get an updated Impreza sooner rather than later. We might see the model break cover during the 2019 edition of the Los Angeles Auto Show in November, and it could arrive in showrooms during the 2020 model year.