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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

Sunday Drive: The future looks bright, and the present ain't bad, either

A look at the week that just passed proves that Autoblog readers love looking into the future. Spy photos of the next Porsche 911 and a mysterious Dodge Demon prototype led the way last week as some of our most popular stories. A teaser from Subaru has our appetites whetted for the next WRX, and we're intrigued by the value proposition offered by the rear-wheel-drive Kia Stinger. Long-distance motorcycle tourers went gaga over leaked images of the next Honda Gold Wing. Such intense interest comes as no surprise considering that it's the standard by which all its competitors are judged, and it looks to be getting some serious new technology in its next iteration. And finally, we can't help tooting our own horn a bit. Autoblog just launched a brand-new Car Finder tool, which, after getting a few data points to work with, offers up a perfect list of vehicles for new-car buyers. As always, tune in to Autoblog next week for a front-row seat to all the happenings worth following in the automotive industry. 2019 Porsche 911 to get digital interior — only the tach will be analog Spy Shots: What the devil is Dodge up to with this narrow-body Challenger Demon? Subaru previews Viziv Performance Concept and 2 tuned STIs for Tokyo Leaked 2018 Honda Gold Wing shows off new suspension, hints at DCT 2018 Kia Stinger will start at $32,795 Dodge Honda Kia Porsche Subaru Coupe Hatchback Motorcycle Future Vehicles Luxury Performance Sedan recap sunday drive

Subaru files for S209 trademark in the U.S.

Last week, Subaru filed an application with the U.S. Patent and Trademark Organization to trademark "S209." The paperwork indicates Subaru would like to apply it to "automobiles, structural parts, and structural fittings therefor," and "floor mats for automobiles." An application doesn't mean anything, but the obvious deduction would be that Subaru is thinking about another special edition Impreza WRX STI for the U.S. market, one that brings a taste of JDM-only nomenclature our way. The S appellation is as serious to the Subaru Tecnica International division as STI is to Subaru overall. The STI boffins have rolled out these extra special modes since the S201 STI in 2000, the Japanese market reaping a new S harvest every couple of years. Our last distant visions of such were the S207 shown at the 2015 Tokyo Motor Show, and the S208 revealed last year. The 208 benefited from a bump in horsepower, from 323 hp to 329 hp and 319 pound-feet of torque, quick-ratio steering, a front strut tower brace, Bilstein dampers as part of a DampMatic II suspension, torque vectoring front and rear, 19-inch BBS wheels, Brembo brakes, a carbon roof, and an unmissable rear spoiler. None of the previous "S" models made it to the U.S. If this one does, we can only guess how Subaru will differentiate it from the hottest Impreza we've had, the recent Type RA (pictured). Our Type RA lost 68 pounds with the help of a carbon roof and spoiler, while a bag of engine mods and revised gearing helped make the most of unchanged 310 hp and 290 lb-ft from the 2.5-liter EJ25 engine. A power bump would likely be first on the wishlist for an S209, but it should be noted that the recent Japanese S cars have used the EJ207 2.0-liter boxer-four, not our 2.5-liter. As with the carmaker's home market, we'd expect an S209 to go into severely limited production. Subaru built 300 units of the S206, 400 of the S207, and 450 of the S208. Even if we do get a brawnier STI, Japan is likely to keep its power close with the WRX STI TC 380 teased last month, putting out 375 hp from a 2.0-liter turbocharged boxer-four. Still, the South-Africa-only WRX STI Diamond Edition rocked 349 hp and 342 lb-ft from its 2.5-liter, so there's a lot of headroom for a U.S. S209 to play with. If we get one, that is. Related Video: