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2015 Subaru Legacy

Subaru has a problem on its six-starred hands, but you wouldn't know it at first glance. Sales are up; in fact, the Japanese automaker has recorded 28-straight months of increased sales in the United States, leading to the best first-quarter Subaru has ever recorded, and 2014 will almost assuredly be the seventh straight year it has posted improvements. So, what's wrong? The answer is simple, though clearly complicated to resolve. Sedans - specifically, midsize examples - have proven a tough nut for Subaru to crack.
The vast majority of those impressive sales statistics have come from just a few models, namely the Forester, Outback and XV Crosstrek. The Impreza continues to sell at a respectable pace, but it's telling that the XV, after just three years on the market, is already Subaru's third-best-selling nameplate, outpacing the aforementioned Impreza (on which it's based), its high-performance WRX sibling and the Legacy, which is now entering its sixth generation, having been first introduced way back in 1989. It's that last model we're examining today.
Despite the fact that the Legacy plays in a hotly contested market segment that includes such stalwart sales champions as the Toyota Camry, Honda Accord, Ford Fusion and Nissan Altima, Subaru's competitor registers as a barely visible blip on the radars of new-car buyers. Graphically illustrated another way, Toyota sells 17 Camry sedans for every new Legacy that Subaru moves.

Subaru recalls more cars, slashes guidance as cheating issue widens

By Naomi Tajitsu TOKYO — Subaru Corp said it would recall more vehicles sold in the Japan domestic market on new cases of inspection cheating, and cautioned that rising recall costs would lop off about a quarter from its annual profit forecast. Shares in Subaru, already reeling from a series of recalls for issues ranging from faulty components to inspection do-overs, fell 5 percent to a four-year low on Monday after news of the fresh recalls and the bleak outlook. The company, the smallest among Japan's major automakers, said it would recall around 100,000 vehicles, including its popular Impreza sedan, after discovering that final tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected. "It's unforgivable that these inspection-related issues are continuing," CEO Tomomi Nakamura said at a briefing, while repeatedly adding that the latest recall would be the last related to testing misconduct. The automaker expects to incur 6.5 billion yen ($57 million) in costs related to the latest recall. This, along with other quality-linked issues, is expected to push down Subaru's operating profit to 220 billion yen in the year to March 2019. It had previously forecast a 300 billion yen profit. Subaru posted a surprise operating loss of 25 billion yen for the three months ended September, its first time in the red for a quarter since 2009 and missing a mean forecast for a 68.46 billion yen profit from 10 analysts polled by Refinitiv. Recall-related costs were the main driver of the loss, while global sales fell 6 percent over the quarter due to weak demand in the United States — its biggest market, where overall demand has cooled since record-high sales in 2016. (Click here for an interactive version of this chart) Engine recall Last month, Subaru nearly halved its first-half operating profit view, citing higher quality-related costs. It later announced a global recall of around 400,000 vehicles, including its Forester SUV and Impreza sedan, to fix a design flaw in the engines' valve springs. That came on the heels of another series of recalls stemming from revelations last year that uncertified workers had been submitting final inspection reports for vehicles sold in Japan. That had also led to a recall of about 400,000 cars. Recalls are common in the auto industry, and automakers regularly put funds aside to pay for them.

Subaru Crosstrek gets an injection of Baja racer DNA from Crawford Performance

Subaru's idea of updating the Crosstrek is dropping a bigger, 2.5-liter flat-four engine in the engine bay. American tuner Crawford Performance has other plans for the city-friendly crossover. It turned the model into an off-roader enhanced with a lift kit, skid plates, and extra lights reminiscent of Subaru's rallying past, among other add-ons. California-based Crawford Performance knows what it takes to improve a Subaru. It's one of the companies responsible for the Crosstrek Baja Racer introduced in 2019, and it's the only aftermarket parts manufacturer ever factory-backed by Subaru. The suspension lift it developed for the second-generation Crosstrek adds 2 inches of ground clearance to the front axle and an extra inch and a half to the rear. For context, the Crosstrek sits 8.7 inches off the ground when it rolls off the assembly line, so the lift alone raises it above the 10-inch mark. Subaru didn't develop the Crosstrek for hardcore off-roading, so Crawford added tubular bumper overriders on both ends and over both rocker panels, aluminum skid plates that protect vital mechanical components from oily (and expensive) encounters with boulders, and additional lights mounted in front of the door mirrors. Spot lights and 15-inch alloy wheels wrapped by beefy tires ensure you can see what's ahead and effortlessly drive over it. Crawford kept the stock, naturally-aspirated 2.0-liter flat-four engine but Top Gear learned it installed an air-oil separator and intake spacers to increase its output from 152 to 167 horsepower. That's not a huge bump, but it should be enough to make the Crosstrek a little peppier. The four-cylinder still spins the four wheels through a continuously variable transmission (CVT), and it exhales through an upgraded exhaust for a rally car-like sound. Adventurers who want to build a lifted Crosstrek need to set aside $550 for the kit, which includes aluminum strut spacers, strut extensions, and other bits and pieces like sway bar link extensions. Other parts like the skid plates, the air-oil separator, and the tubular add-ons are sold separately. And, of course, you'll need a good set of tires. If you're not a DIYer, Top Gear reported Crawford plans to sell a fully-assembled model positioned between the production Crosstrek and a purpose-built race car. It will cost approximately $35,000 when it goes on sale.  Related Video: