2006 Subaru Wrx Limited Wagon on 2040-cars

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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

Submit your questions for Autoblog Podcast #344 LIVE!

We're set to record Autoblog Podcast #344 tonight, joined by Doug DeMuro, author of Plays With Cars, formerly of Porsche Cars North America, and all-around swell guy. You can drop us your questions and comments via our Q&A module below, and we'll give them extra-diligent attention. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #344
BRZ STI?

Subaru WRX STI prototype spied in motion

Earlier this week, we got all hot and bothered over a set of spy photos showing the next-generation Subaru WRX STI testing at the Nürburgring. And while pretty still shots of a camouflaged car are always nice to look at, stirring up lots of speculation, having video is even better. Good thing, then, that our trusty spies were on hand to get some rolling footage of that STI as it lapped the infamous German track.
Now, as a good majority of the comments on our previous post will point out, it looks like Subaru has dumbed down the design of that decidedly hot WRX Concept from New York for the road-going car. Of course, we need to wait until all that swirly paper is pulled off the body, but from what we can see here, it looks like this new 'Rex will be more akin to the current Impreza than we were originally led to believe.
So while we wait and hope that what's under the camouflage will be something sexy, have a look at the video below to watch the WRX STI prototype get worked out on the 'Ring.