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Subaru mulling three-row utility, upscale versions of existing models

Subaru was one of few automakers whose sales actually picked up during the recent recession. But now that auto sales are back on track (and expected to hit pre-recession numbers this year), Subaru is trying to come up with new products to fill voids in its current lineup. Wards Auto had a chance to talk to Subaru's director-product manager Ken Lin, who indicated that the automaker is planning to introduce new models this year that will help it attract new buyers without alienating current ones.
The biggest void, of course, is a competitive three-row crossover, a role the Tribeca does not fill in one a very popular segment. Lin said that while there's no current plan to kill off the Tribeca, Subaru is looking at creating a larger three-row CUV with more interior space. In addition to to something big, Subaru is getting ready to bring its customers more luxury with new touring models, but does not anticipate going toe-to-toe with Mercedes-Benz or BMW.
By the end of this year, Subaru will be introducing a new hybrid model, although we don't yet know on which model it will be based. What we do seem to know is that the car will get its power from a nickel metal hydride battery rather than a more modern lithium-ion pack for the sake of simplicity. Finally, Lin mentioned a new product being brought into the sports car segment, but while the article takes this as a hint toward a possible BRZ Turbo, it could also be a reference to the next generation of the WRX and WRX STI.

Subaru cuts annual profit outlook on strength of yen, typhoon impact

TOKYO — Subaru lowered its annual profit forecast on expectations of a stronger yen and the impact on production from a typhoon last month, driving its shares down as much as 4.5%. Japan's smallest major automaker, one fifth of which is owned by top-ranked Toyota, cut its forecast for operating profit to 220 billion yen ($2 billion) for the year ending March 2020, from a previous forecast of 260 billion yen. Subaru revised its forecast for the yen to average 107 versus the dollar over the period, from 110 previously. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases. The United States is Subaru's biggest market, accounting for about 60% of overall sales. Typhoon Hagibis forced Subaru to halt production at its factories in Gumna, north of Tokyo, for more than a week in October due to supply chain disruptions. The stoppage, which lasted until Oct. 25, resulted in lost production of 11,000 vehicles, Chief Executive Officer Tomomi Nakamura told a briefing in Tokyo on Wednesday. Hagibis was the worst typhoon to hit Japan in decades, leaving at least 80 people dead, according to national broadcaster NHK. "We have restarted production, but we couldn't return to full capacity immediately," Nakamura said. "Some of our suppliers' factories were completely submerged." Subaru also said vehicle sales rose nearly 20% in the first half of the fiscal year compared with a year earlier, driven almost entirely by an improvement in the United States amid strong demand for the Forester SUV crossover. Subaru shares were down 1% at 3,102 yen by 0440 GMT, after touching a low of 2,995.5 yen earlier.

10 automakers shack up in Detroit hotel to talk Takata airbags

Since Takata has decided not to take the lead concerning potential issues with its airbag inflators, the automakers have. Perhaps that's unsurprising, since it's the automakers, not Takata, that will take a beating on the dealership floor if consumers decide its models are a health hazards. The Detroit News reports that Toyota, Honda, General Motors, Ford, Chrysler, Mazda, BMW, Nissan, Mitsubishi and Subaru met in a hotel conference room near the Detroit Metropolitan Airport last week to sort out a way to understand the technical issues involved. So far, faulty airbag inflators have been ruled the cause of five deaths and 50 injuries around the world, but neither Takata nor investigators understands exactly why the inflators are malfunctioning. The National Highway Traffic Safety Administration recently asked Takata to issue a national recall, Takata declined, citing a minuscule failure rate and the fact that it's still investigating the issue. Toyota and Honda then made an industry-wide appeal for "a coordinated, comprehensive testing program" that would pinpoint the problem inflators and get them replaced, and that's what the Detroit meeting was about. Numerous issues, however, will make this a long row to hoe: simply getting the parts to replace the nearly 20 million inflators in cars recalled around the world so far - even working with other suppliers - will take a years, but more importantly, no one knows if the replacement inflators currently being installed will suffer the same issue. Answers will hopefully come quickly with Takata, the ten automakers and NHTSA all independently investigating the problem.