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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.

Just add power | 2017 Subaru Impreza First Drive

The phrase "all new" gets bandied about way more than it should in the automotive world. Depending on how lenient an automaker's marketing department is feeling at the time, refreshed fascias and a reshuffling of trim levels might earn a tired vehicle the all-new appellation. That's not what Subaru has done with its reborn Impreza compact. Everything from its wheels to its windows has been completely redesigned for 2017. With one glaring exception, the 2017 Subaru Impreza has benefited immensely from its rebirth. The chassis is stiffer, the steering is better, and the interior is larger than before. Like on most Subarus, standard all-wheel drive remains a key selling point. The only thing that's missing is more power. Subaru has gotten guff over the years for its exterior design, with vehicles being called everything from ugly (Baja) to odd (B9 Tribeca). The 2017 Impreza doesn't fit those descriptions. There's just enough surfacing pressed into its bodysides to attract the eye, and the burly flared-shoulder fenders add a muscular stance. Dead-on, the Impreza's face is a bit too nondescript – if it didn't wear a Subaru badge, you'd be forgiven for mistaking it for a Honda or Toyota – but it's not unattractive. The bug eyes of Imprezas past are now nothing more than a historical footnote. The Impreza is again available as either a sedan or, for $500 more, a hatchback. The trunk of the sedan measures 12.3 cubic feet. Obviously, the hatch offers more utility than the sedan, with 20.8 cubic feet of space behind the rear seats and a maximum of 55.3 cubes with the seats folded. That's more than the VW Golf's 52.7 and way more than the new Honda Civic hatchback's maximum of 46.2. The first thing we noticed from the driver's seat is how easy it is to see out of the 2017 Impreza. Visibility is excellent in every direction, and all that glass means the cabin feels light and airy. Large, easy-to-read speedometer and tachometer gauges sit front and center, but the rest of the information needed for the task of driving is spread across three different LCD screens. The first sits between the two gauges, and the second is atop the center stack. The third screen is the largest, measuring 6.5 inches on base 2.0i models and 8.0 inches in Sport and Limited trims.

Subaru teasing new WRX S4 model ahead of Japanese debut

The Subaru WRX range is growing just a little bit larger, at least in Japan, with the automaker's teasing announcement of a new version called the S4. Unfortunately, the company is keeping details about its latest all-wheel drive sport sedan a closely guarded secret for the moment.
From what we can glean, it appears that the S4 might be a more luxurious take on the WRX. According to the release, the name stands for the four qualities that Subaru wants the sedan to have: "'Sports performance', 'Safety performance', 'Smart driving' and 'Sophisticated feel.'" As part of this focus, the car comes with the company's EyeSight camera system. Thankfully, we don't have too long to wait to find out what all of the buzz words actually mean because Subaru is unveiling the S4 on August 25 in Japan.
The automaker also launched a teaser website for the S4 that you can cheek out, here, but at the moment it doesn't provide any more details about the new sport sedan. The site just has countdown until the August reveal. There's also no indication yet whether this potentially more premium WRX could make it US shores. Scroll down to read the Subaru's rather concise teaser for the upcoming S4.