2014 Subaru Outback 2.5i Limited on 2040-cars

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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.

Subaru brought back its best rally racing look

Every car has a color combination that suits it best, one that just fits and flatters. For the Subaru WRX STI, it's blue and gold. At the 2019 North American International Auto Show in Detroit, Subaru revealed it is bringing back its iconic motorsports livery for the 2019 season with a modern interpretation of the blue and yellow star cluster graphic, complemented by gold wheels. It also announced it is reorganizing its motorsport division's structuring. The WRX STI has been seen in numerous colorways throughout the years. One of the main patterns last year was a graphic-heavy assortment of gray and white, accented by either yellow, red or blue. But for 2019, Subaru is following its heart and returning to one of the brand's most classic looks. According to Subaru, the colorway is inspired by the World Rally teams of the '90s and '00s. It features WR Blue Pearl and 13-spoke gold wheels. A massive yellow star cluster logo stretches across the front and rear doors and bleeds onto the rear arches. The sweeping comet design starts at the front quarter and across the B-pillar and roof. Furthermore, the red STI logo is seen all over the car, in places such as the front air intake, the roof scoop, and on the rear wing panel. Small dark blue star clusters on the front and rear sides of the car add more texture to the design, as well as bright yellow Subaru and Subaru Motorsports banners. After Subaru's performance division Subaru Technica International celebrated its 30th anniversary last year, Subaru is renaming its motorsports arm. Now aptly called Subaru Motorsports, Subaru plans to expand into more racing divisions, beyond its typical participation. Fans will have to wait a couple of months to see the gorgeous blue, yellow, and gold scheme. Subaru will debut the new car March 15 at Missouri's Rally at the 100 Acre Wood as part of the American Rally Association's 2019 National Championship Series. Related Video:

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.