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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

Ford tumbles to second worst in Consumer Reports reliability survey, list dominated by Japanese [w/video]

It's no secret that MyFord Touch has had its share of problems since being introduced, but the most recent reliability survey from Consumer Reports shows just how much this infotainment system has affected Ford. Just two years ago, the automaker was in the top 10 for the institute's reliability rankings, but since then, it has tumbled to the second-lowest rung just above dead-last Jaguar. In addition to MyFord Touch, CR also attributes a handful of new products that have had issues right out of the gate.
Compiled from 1.2 million subscriber surveys, this year's auto reliability survey heavily favors Japanese automakers, with eight of the 10 spots hailing from Japan. Toyota brands grabbed the top three spots (Scion, Toyota and Lexus - in that order) with Mazda, Subaru, Honda and Acura filling the next four spots. The only non-Asian automaker cracking the top 10 was Audi at number eight.
Audi climbed a total of 18 spots from last year, and Cadillac and GMC round out this year's top gainers breaking into the top 15. Helping Cadillac's upward movement, the CTS Coupe was named the most reliable domestic car. Lincoln, Volvo and Chrysler join Ford on this year's biggest loser list.

Subaru Levorg STI Sport should get us closer to the future WRX

At the Tokyo Motor Show, Subaru showed a "prototype" of the next-generation Levorg, itself a Japanese-market wagon derivative of the Subaru WRX sedan. While it gave us a good idea of what to expect from the next WRX, the Levorg STI Sport that will be shown at Tokyo Auto Salon in January should give us an even better look at the hot Subaru we'll get. This is based on the fact that among current Levorg trims, the STI Sport has a front bumper fascia that's more aggressive and that echoes the design of the WRX, whereas the standard trim is more mellow. So far, Subaru has only released a teaser video of the sportier Levorg. It shows STI badging on the back of the car and on the exhaust tips. There's also a glimpse of the tachometer that shows a redline of just over 6,000 rpm. Since that's lower than the WRX's turbo 2.0-liter engine's 6,500-rpm redline, this is probably the new 1.8-liter turbocharged engine Subaru announced will replace the current base turbo 1.6. It will probably make at least 170 horsepower to match the outgoing model. Based on the current STI Sport engine offerings, this should be the base engine, while the WRX's turbocharged FA20 will be an option. The full reveal of the Levorg STI Sport will come on January 10. Expect further details on mechanical changes as well, which will hopefully include information on a more powerful engine that could appear in the WRX. We wouldn't be surprised if it ended up using a slightly updated version of the current WRX's 2.0-liter FA20 engine, since even the WRX STI is expected to get a more powerful - probably over 300 horsepower - version of that same engine.