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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

2014 Subaru XV Crosstrek Hybrid finally adds gas-electric option to the brand [w/video]

For a company that does a pretty great job of tying its vehicles to the environment - or, better said, to people who like to actually get out into the environment - Subaru hasn't exactly been a leader in green vehicle production. In fact, it's 2013 and the company is finally releasing its first-ever production hybrid, the XV Crosstrek Hybrid. Tom Doll, Subaru's executive vice president, admitted as much at the unveiling today at the New York Auto Show: "We at Subaru were not the first to market with a hybrid, but we sure made sure we did it right."
That may be, but for now the automaker doesn't want to tell us all the details of how right it is. We do know that the powertrain takes Subaru's 2.0-liter boxer engine and adds in a 13.4-horsepower electric motor and continuously variable transmission. All-wheel drive will be, of course, standard, and Subaru promises the XV Crosstrek Hybrid will offer the "same utility and versatility as the gasoline model," including 8.7 inches of ground clearance. The hybrid does weigh 300 pounds more, though, which required a re-engineered chassis.
The motor can move the lifted Impreza in all-electric mode up to 25 miles an hour (distance not specified). Subaru isn't talking precise fuel economy numbers, either, just that it will be the "most fuel-efficient all-wheel-drive crossover in America" and will unsurprisingly have start-stop functionality. We do hear, though, that the hybrid will get around 10-percent better fuel economy than the standard gas-only XV Crosstrek. The most efficient version of that car, the one with the CVT, gets 25 miles per gallon in the city, 33 highway and 28 combined. Whatever this hybrid XV Crosstrek gets, we expect Subaru'll sell a million in Portlandia. For more, scroll down to watch an official video and read the press release.

2021 Subaru WRX STI to pack 400 horsepower?

The next-generation Subaru WRX STI may boast as much as 400 horsepower from a re-tuned, 2.4L turbocharged boxer engine, making it the most powerful factory STI ever to be offered in America.  Forbes reports that an upgraded version of the engine currently offered in the three-row Subaru Ascent crossover will power the new model, rather than the 2.0-liter unit that powers the current WRX or the 2.5L found in the current STI.   According to the report, which cites an unnamed source close to Subaru, the company's engineers are hard at work beefing up the FA24 turbocharged boxer to coax 400 horses and 361 pound-feet of torque from an engine that currently offers just 260 horsepower and 277 lb-ft of torque in family-hauling tune.  While Subaru has been building high-output WRX and STI models for its home market for decades, this would be the first time a 400-horsepower STI would be offered for sale in the U.S. In fact, it would become the most powerful Subaru sold here, period. That honor currently belongs to the 341-horsepower 2019 STI S209, which is incredibly rare (and correspondingly expensive). It followed closely on the heels of the STI Type RA, which was similarly difficult to obtain, but not nearly as powerful or expensive.  Limited (as its name suggests) to just 209 units, the S209 was offered for only one model year at an eye-watering MSRP of $64,880. Customers are still taking delivery of their cars, as STI's tuning shop can only crank out a small handful per day. If it seems like Subaru has been taking its sweet time introducing a new WRX and STI, that's because development of the hotter models diverged from that of the base Impreza prior to the launch of the latter's latest generation. Subaru considers them independent models, and while they still share platform commonalities, they are no longer treated as a single product line. Current models are still loosely based on the last-generation Impreza, and the best hint we have as to the future of the WRX and STI is the Viziv Performance STI concept, which debuted at the Tokyo Auto Salon back in 2018. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.