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Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV

Subaru uses a mime and a toy car to explain why it loves the boxer engine

I will freely admit to struggling with why Subaru continues to stubbornly employ a boxer engine design while so few other automakers do the same. After all, with twice the number of cylinder heads and cams as a traditional inline four-cylinder engine, a boxer four is more complex, more expensive to manufacture and more cumbersome to service with few tangible benefits. Until recently, the company's engines struggled to meet the fuel economy numbers of its competitors while offering no real boon in horsepower or torque. Subaru seems to recognize I'm not the only one scratching my head.
In order to help us non-believers understand what's what, the company has employed a pair of mimes, a toy car and a few clay engines to demonstrate the folly of every other automaker on the planet. Subaru says the boxer offers up a lower center of gravity than either an inline four-cylinder engine or a V6, which I will gladly concede. The company also says the design offers up smoother operation.
I'll offer just two counterpoints here. First, an engine with a low center of gravity is excellent, but when vehicles like the Forester, XV Crosstrek and Outback boast more ground clearance than most mainstream SUVs, that argument flies out the window. Second, anyone who's spent any amount of time behind the wheel of a vehicle equipped with an inline four and then proceeded to move into one propelled by a boxer can tell you the latter has all of the idling manners of a small tractor. Check out the video below to see for yourself.

Takata air bag recall list

The National Highway Traffic Safety Administration confirmed yesterday that 33.8 million vehicles with Takata airbags are going to be recalled. It's the largest recall in automotive history. The already record-breaking rate of automotive recalls this year shows no signs of slowing down, especially since millions of cars with defective airbags made by global supplier Takata are under ongoing scrutiny. The federal government is warning owners that inflator mechanisms in the air bags can rupture, causing metal fragments to fly out when the bags are deployed. The faulty air bags have already been blamed for multiple deaths. How do you know if your vehicle is safe? The National Highway Traffic Safety Administration released an updated list of vehicles under recall. Sometimes however, the government's website will crash and the list may not be complete. Check your VIN at the NHTSA website to make sure. The list of cars affected by the recall has not been released, but seem to span multiple models over the years for many of the automakers.