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Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV

Subaru will show a WRX STI Type RA, possibly with a BRZ STI, on June 8

Subaru just released another teaser photo today of a World Rally Blue STI model, and they also provided us with some information about what the car is. Apparently it is a new WRX STI Type RA, a name that Subaru fans will recognize as an indication of an ultra-hardcore version of the all-wheel-drive legend. As you can see from the teaser photo, this Type RA will have a carbon fiber roof without a sunroof. This WRX STI has more than that, though. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. According to Subaru, the rear wing will also be carbon fiber, and the car will have gold-colored forged BBS wheels measuring 19 inches in diameter. Inside, occupants will find Recaro seats. Mechanically, the suspension has been updated and now features Bilstein shock absorbers. The engine and transmission also see updates, but Subaru wouldn't give specifics at this time. Expect all the details to be revealed on June 8, the date Subaru has been teasing on Twitter. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Now with this new teaser image and confirmation of a Type RA, one might think that the previous teaser of a winged blue Subaru was of this special WRX STI. However, we're not so sure. We've been studying the trunk lid of the car in the Twitter teaser alongside those of production BRZs and WRXs. If you look closely, there's a long arching crease in the trunk lid of the teaser car and a production BRZ, but it doesn't appear on the WRX. The WRX has a very flat trunk lid. As such, we believe the teaser image is still of a BRZ STI, and we suspect Subaru may reveal both it and the WRX STI Type RA on June 8. Related Video: Image Credit: Subaru Subaru Coupe Performance Sedan subaru brz sti

California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle