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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.

2019 Subaru STI S209 is a burbling blue beast

The 2019 Subaru STI S209 is a celebration of everything that made the STI and Impreza WRX STI line so popular with car enthusiasts. It has extreme body work, a heavily boosted flat-four that slams you in your seat, performance gizmos such as a center differential controller and an intercooler sprayer, as well as impressive handling and grip, in part due to its all-wheel drive. And of course, it has that signature boxer engine rumble, which has been accentuated with this model's exhaust system. We wanted to share that sound so captured some footage of the car on start-up, gentle acceleration, full throttle acceleration, and some free-revving, in that order. It's a mellow sound, one that occasionally sounds like a motorcycle, but a bit smoother. And while it's noticeable at lower speeds, it's tuned such that it's extremely quiet at cruising speeds, and doesn't become massively louder at full throttle. In fact, you'll notice that the road noise and the wind rushing out of the exhaust ends up overwhelming the rumble at some points. It's something that both Senior Producer Chris McGraw and I noticed in our drives of the super Subaru. If it seems like it's too quiet, we're sure the aftermarket can solve the volume issue for you.

Subaru Impreza gets smarter, safer and sharper in Japan

Subaru quietly gave the sedan and hatchback variants of the Impreza a mid-cycle update in Japan. Both body styles now wear a sharper front-end design, and they receive additional tech features. The current, fifth-generation Impreza made its global debut at the 2017 New York Auto Show. The 2020 model introduced online in Japan stands out with a revised front fascia characterized by a wide air dam that stretches the entire width of the bumper, chrome-look L-shaped trim on either end of it, and a revised grille. The changes made to the rear fascia are largely limited to tweaked lights. All told, you need to be an eagle-eyed car-spotter to tell the face-lifted model apart from its predecessor. Buyers seeking a sportier Impreza will be disappointed, Subaru is still taking its time developing the next WRX, but those who want a more high-tech car that helps them drive will be thrilled. Every Japanese-spec Impreza regardless of trim level is now equipped with EyeSight Touring Assist, a suite of electronic driving aids that handles accelerating, braking and steering in a wide range of conditions. These features don't make the Impreza autonomous in any way, and the driver still needs to stay focused on the road ahead, but they help when driving becomes tedious. There are other, more minor upgrades on the menu. The door mirrors now tilt down when the driver selects reverse, for example, and Subaru added a front-view camera.  In Japan, the Impreza carries on with either a 1.6-liter flat-four rated at 115 horsepower, or a 2.0-liter flat-four with 154 horses on tap. The entry-level model is front-wheel drive, surprisingly, but all-wheel drive is standard on higher trims. Regardless, both engines shift through a continuously variable transmission (CVT) that offers seven pre-programmed virtual gears. The Impreza lost its manual transmission in its home country years ago, though the company's American division continues to let buyers give a shift. Subaru hasn't announced plans to make similar changes to the American-spec model and tells us "it's too early for us to release information" about that, but it's not too far-fetched to speculate we'll get an updated Impreza sooner rather than later. We might see the model break cover during the 2019 edition of the Los Angeles Auto Show in November, and it could arrive in showrooms during the 2020 model year.