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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

Subaru Levorg Concept has us dreaming about a WRX wagon

We're not sure what got in the water supply of Subaru's Tokyo Motor Show team, but we like the results. After checking out the Cross Sport Design Concept, which we would love to see as a BRZ shooting brake, Subaru took the wraps off its Levorg Concept. Naming convention aside, the idea of a sport-tuned wagon with a boxer engine is music to our ears.
The design language fits in with recent Subaru products, and the Levorg's face is very similar to the 2015 WRX that was just unveiled across the Pacific Ocean at the LA Auto Show. In terms of its size, though, this concept is roughly the same as the current Outback, only it sits about five inches lower. Power comes from either of a pair of boxer engines: a fuel-efficient 1.6-liter or a 296-horsepower, 2.0-liter. Both engines would be paired to Subaru's Symmetrical all-wheel-drive system.
Subaru says that the Levorg is a thinly veiled version of the production sports tourer that will go on sale (likely in Japan and/or Europe) next spring. Could this mean we could soon see a sporty Legacy wagon in the US? We can only hope. More details about the Levorg are posted in the press release found below.

2021 Subaru Crosstrek is finally getting a more powerful engine

Subaru will address one of the Crosstrek's biggest shortcomings by making a 2.5-liter flat-four engine available in time for the 2021 model year. It will power the range-topping Limited trim and a new Sport-badged model. You asked, and the Japanese company is listening. Tom Doll, the CEO of Subaru's American division, told industry trade journal Automotive News that many customers have complained about the 152-horsepower, 2.0-liter four-cylinder engine that has powered the current-generation Crosstrek since its launch. Put bluntly: It's slow.  "One of the things that our customers were telling us about the Crosstrek was it was maybe a little underpowered with the 2.0-liter engine. Well, the 2.5-liter engine will solve that problem," he announced at a dealer meeting. While he stopped short of divulging technical details, Subaru has a pair of 2.5-liter flat-fours to choose from in its parts bin. The first is a turbocharged unit rated at 310 horsepower and 290 pound-feet of torque when it's thumping under the WRX STI's hood. Don't get your hopes up — that's not what's going in the Crosstrek, sadly. Nothing is official, but it's reasonable to assume Doll was referring to the naturally-aspirated four available in the Forester, the Outback, and the Legacy. It delivers 182 horsepower and 176 pound-feet of torque in all three applications. Subaru will usher the 2.5-liter into the Crosstrek range by expanding it with a new trim level called Sport. The range-topping Limited will also be offered with the bigger engine. Pricing information hasn't been announced yet, and neither has availability, but the peppier Crosstrek will likely arrive later in 2020 as a 2021 model. The Crosstrek is a jacked-up Impreza with a more rugged design, so it stands to reason the 2.5-liter fits in both models. There's no word yet on whether the equally underpowered Impreza will receive it. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.