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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.

2020 Subaru Legacy XT Drivers' Notes | It's what's inside that counts

The 2020 Subaru Legacy is completely new in all of the places that can’t be seen. Subaru transitioned the redesigned sedan onto its Subaru Global Platform and gave it an entirely new interior, but the drab sheetmetal hardly looks changed from the previous generation. ThereÂ’s a new 2.4-liter turbocharged flat-four thrashing away under the hood, replacing the flat-six as the upgrade engine for the Legacy. The boosted XT version of the sedan is the one that we spent a week driving. In this configuration, the Legacy offers 260 horsepower and 277 pound-feet of torque, routing it through a continuously variable transmission. Subaru claims the trip to 60 mph takes just 6.1 seconds. Of course, all-wheel drive is standard. This feature would have made the Legacy unique in this segment a short time ago, but the Nissan Altima is now available with all-wheel drive, and the Camry will soon be offered with it as well. Our Touring XT was the most expensive Legacy that money can buy at $36,795. Being the highest trim, it presents well inside with tan and black high quality leather all over the place. Subaru is finally starting to put together some great interiors, and it shows. A whole list of luxury and tech features sweeten the deal even more for the Legacy. Additions like the 11.6-inch infotainment system, driver-monitoring system, power sunroof, front view monitor, satin finish mirrors, heated everything and much more all add up to make a surprisingly luxurious Subaru sedan. Senior Editor, Green, John Beltz Snyder: I got to take this home while there was still a lot of snow packed on neighborhood roads, and boy was that a treat. Like the Outback, this Legacy feels great on soft or slippery roads. ItÂ’s fantastically easy to get this to start drifting oh so gently, and then to maintain and control that slide with zero fear of it getting too hairy. Repeatable, manageable, fun. ItÂ’s officially Subaru season. On the cleared (but often pock-marked) roads, the Legacy is a comfortable cruiser without being too soft. It provides a good feel of the road, but is never anywhere close to punishing. Combined with all-wheel drive and slightly artificial-feeling but otherwise precise, easy and confidence-inspiring steering, this is pleasant — and sometimes even fun — to drive regardless of the road conditions. Assistant Editor, Zac Palmer: Subaru stepped up its tech game in the 2020 Legacy with a massive 11.6-inch touchscreen.

Factory Five's Subaru WRX-based 818 kit now on sale [w/video]

The Subaru WRX has always needed a dash more style, and the do-it-yourself carmakers at Factory Five are looking to accomplish a lot more than that with their new mid-engine, rear-wheel drive 818. The sports car started with a contest in 2011 to create the shape for the company's next vehicle, while sticking within certain limits. A designer named Nouphone Bansasi had his entry chosen, and first cars were completed last year.
The 818 is named after its target weight of 818 kilograms (1,803 pounds), and it's offered in two forms. The S starts at $9,990 and is meant for street use, with two seats and a basic interior. The R model for $10,990 is more track-focused and features a tiny windshield and full roll cage. The company claims that complete cars can be built for around $15,000, after factoring in the donor Subaru. Performance is very brisk, with acceleration to 60 miles per hour in under four seconds, according to Motor Authority.
The kits are meant to be something that even a relative novice could put together. All the builder needs to provide is a 2002-2007 Impreza or WRX. The car donates its turbocharged boxer four-cylinder engine, transmission, axles, brakes, steering and other major components. Factory Five supplies the spaceframe, body, suspension, lights, windshield and some interior trim. It doesn't even need paint, thanks to its gel-coated fiberglass body panels. The company also offers a laundry list of options, including carbon fiber aero components, upgraded suspension parts, improved brakes and more. Kits can be ordered in either left- or right-hand drive.