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Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV

Upcoming Subaru WRX STI rumored to get hybrid drivetrain

Subaru might electrify the next-gen WRX STI. According to a rumor from Motoring in Australia citing an unnamed Subie insider, the brand's engineers reportedly have two hybrid systems under development for the future model. The move would allow the STI to boost power output and improve fuel economy and lower emissions to keep up with US regulations. According to Motoring's speculation, the next STI might use an electric motor at the back to power the rear axle and an upgraded version of the FA20 turbocharged 2.0-liter at the front. A new dual-clutch six-speed gearbox would help the power get to the road, and the total system could allegedly offer around 322 horsepower versus 305 hp from the current US model. This rumor also claims the next-gen STI would continue as a sedan when it arrives in 2017. Like previous iterations, the four-door will share underpinnings with the Impreza, which will mean a move to Subaru's new modular platform. The standard hybrid might only be the beginning of electrification for the future STI. Motoring's source also claims the company has a plug-in hybrid variant under development, but it might not debut until the 2018 Tokyo Motor Show. A hybrid STI could be exciting, but until there are solid facts, this rumor joins a long history of powertrain speculation about the high-performance Subaru. In 2008 and 2010, reports emerged about a diesel version, but it never appeared. We once even heard that the current-gen WRX might boast an electric turbo.

The refreshed 2018 Subaru WRX starts at $27,855

Subaru has always staggered the release of new versions of the WRX and STI performance twins from that of the more pedestrian Imprezas. While the latter just received a ground-up redesign for 2017, the once and future kings of all-wheel-drive performance sedans make do with some new options and massaged over styling. Pricing for the new cars, which go on sale sometime in the next few months, has finally been announced. Pricing for the pair is on the high-side of the competition. The 2018 Subaru WRX starts at $27,855. That nets you a 2.0-liter turbocharged boxer four-cylinder making 268 horsepower, a six-speed manual, and Subaru's symmetrical all-wheel drive with torque vectoring. For comparison, the Ford Focus ST starts at $25,650 while the Volkswagen GTI starts at $26,415. Pricing for the new Honda Civic Si hasn't been announced, but expect it to be somewhere in the mid $20,000 range. Stepping up to the STI will set you back at least $36,955, though you get a more powerful 305-horsepower 2.5-liter turbocharged boxer four and a more advanced version of Subaru's all-wheel-drive system. Plus, you get the big rear wing, and that's worth it's weight in Mitsubishi Lancer Evolution owner tears. The far more powerful Ford Focus RS meets the STI dollar for dollar at $36,955 while the Volkswagen Golf R retails for an eye-watering $40,195. Like the Civic Si, pricing for the Civic Type R has yet to be revealed. Both the WRX and STI get updated styling on the front bumper, with larger grilles and new black trim. Additionally, the $32,455 WRX Limited and all STI models feature new LED headlights. The STI also gets new 19-inch wheels and upgraded Brembo brakes. The WRX Premium has an optional $2,050 performance pack that adds Recaro seats with an 8-way power driver's seat, red-painted brake calipers with Jurid brake pads, and deletes the moonroof to reduce weight. Other changes include the latest version of Subaru's Starlink infotainment system, a larger infotainment screen, new EyeSight driver assist features (only on CVT-equipped WRX models), upgraded sound deadening, and upgraded interior materials. Both models receive new roof rack mounting brackets. Look for the 2018 Subaru WRX and 2018 Subaru STI to hit showrooms in the next few months. Related Video: