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Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive

2021 Subaru Crosstrek is finally getting a more powerful engine

Subaru will address one of the Crosstrek's biggest shortcomings by making a 2.5-liter flat-four engine available in time for the 2021 model year. It will power the range-topping Limited trim and a new Sport-badged model. You asked, and the Japanese company is listening. Tom Doll, the CEO of Subaru's American division, told industry trade journal Automotive News that many customers have complained about the 152-horsepower, 2.0-liter four-cylinder engine that has powered the current-generation Crosstrek since its launch. Put bluntly: It's slow.  "One of the things that our customers were telling us about the Crosstrek was it was maybe a little underpowered with the 2.0-liter engine. Well, the 2.5-liter engine will solve that problem," he announced at a dealer meeting. While he stopped short of divulging technical details, Subaru has a pair of 2.5-liter flat-fours to choose from in its parts bin. The first is a turbocharged unit rated at 310 horsepower and 290 pound-feet of torque when it's thumping under the WRX STI's hood. Don't get your hopes up — that's not what's going in the Crosstrek, sadly. Nothing is official, but it's reasonable to assume Doll was referring to the naturally-aspirated four available in the Forester, the Outback, and the Legacy. It delivers 182 horsepower and 176 pound-feet of torque in all three applications. Subaru will usher the 2.5-liter into the Crosstrek range by expanding it with a new trim level called Sport. The range-topping Limited will also be offered with the bigger engine. Pricing information hasn't been announced yet, and neither has availability, but the peppier Crosstrek will likely arrive later in 2020 as a 2021 model. The Crosstrek is a jacked-up Impreza with a more rugged design, so it stands to reason the 2.5-liter fits in both models. There's no word yet on whether the equally underpowered Impreza will receive it. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.    

Subaru fights sticker shock with financing deal on $65,000 WRX STI S209

Subaru's American division has come a long way since it peddled the tiny 360 during the late 1960s. The limited-edition, $65,000 WRX STI S209 unveiled during the 2019 Detroit Auto Show is its most expensive car yet, so the company is taking steps to make it a little bit more accessible. The Japanese firm sent its American dealers a bulletin announcing the S209 is eligible for 3.49% APR for up to 63 months, according to CarsDirect. The publication noted that rate amounts to monthly payments of $1,131 over 63 months, which adds up to $71,231. Buyers are still forking over more than $6,000 to the bank, but they're saving about $4,700 compared to a 6% loan. That's a substantial amount of money to drop on a WRX STI; it's priced in Audi TT RS territory. For the money, enthusiasts get one of the rarest street-legal cars Subaru has ever produced. After driving it, we called it the fastest, sharpest-handling, and most sophisticated WRX ever to grace our shores. It's powered by a 2.5-liter flat-four engine turbocharged to 341 horsepower and 330 pound-feet of torque, generous increases of 31 and 40, respectively, over the regular WRX STI. We'll let you decide whether exclusivity and power are worth a roughly $22,000 premium. If you want an S209 in your driveway, act fast because production is strictly limited to 209 examples, and odds are the entire batch will be spoken for sooner rather than later. Keep in mind dealers will be tempted to slap a markup on the car due to its rarity, so you might need to spend more — in some cases, a lot more — than the number listed on the window sticker. Featured Gallery 2020 Subaru WRX STI S209 View 41 Photos Auto News Subaru Car Buying