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Subaru profit climbs 48% on strong crossover sales in first quarter

TOKYO — Subaru reported a 48% increase in first-quarter operating profit on Monday as global sales grew, led by demand for the Ascent and Forester SUVs in the United States. The smallest of Japan's major automakers posted an operating income of 92.2 billion yen ($870 million) for April-June, versus 62.1 billion yen a year earlier and an average estimate of 65.6 billion yen from eight analysts polled by Refinitiv. Sales in the United States, by far Subaru's biggest market, rose 20%. It accounts for about 60% of Subaru's overall sales. The maker of Legacy sedans and Forester SUV crossovers maintained its forecast for operating income at 260 billion yen for the year to March 2020, up 45% from a year earlier. The previous fiscal year was marred by a string of recalls, production stoppages and inspection improprieties that cut the automaker's earnings in half. Subaru reiterated its annual forecast for global sales of 1.06 million vehicles. It also left unchanged its assumption that the yen will average 110 against the dollar over the course of the fiscal year, versus 111 last year. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases.

The art of WRX-ing in the rain

There it is again, the quiver of the STi's blue rear spoiler. I noticed it yesterday on the Autobahn north of Frankfurt. Although the speed limit was 120 kilometers per hour, I was cruising in sixth gear around 200 kph when the STi's signature rear appendage began to dance in my rear view mirror. Now I'm redlining fifth gear on the front straight of the legendary Nurburgring's north loop and it's back. Only this time the quivering blade is in a deluge of water coming off the Subaru's 18-inch Dunlops. It's a rooster tail worthy of Miss Budweiser and it's a constant and sobering reminder that I'm lapping the 13-mile long Nordschleife in a freezing and unrelenting rain. I'm driving a 2017 German-spec Subaru WRX STi, not the updated 2018 version that'll get revised front end styling, tweaked suspension tuning, larger Brembo brakes and 19-inch wheels and tires. At 240 kph, close to the 2.5-liter boxer four's 6,700 rpm redline, I shift up to sixth gear and change lanes to avoid the standing water on the left side of the track. It's my third lap. I'm getting over-confident. The all-wheel drive WRX STI is dealing well with the tricky conditions and the Ringmeisters of the past that tamed this track since it was first built in 1929 - Ascari, Fangio, Clark, Caracciola, Nuvolari, Rosemeyer, Chiron, and Ickx - are talking to me inside my head. And they're egging me on. Pushing me to go faster. I'm sticking to wet line and staying off the tall curbing that marks most apexes. Bounce the Subi off a curb and I'm sure to star in the next Nurburgring crash video to hit YouTube. I'm also desperately trying to stay off of the new pavement, which dots the circuit and has a coefficient of friction in the wet similar to snot. Then I make a huge mistake on the entrance to Bergwerk, a tight right hand corner that comes up quickly after a long, fast section and the left hand kink that Nicki Lauda got so wrong in the 1976 Grand Prix. The Nordschleife has 160 corners. Most are blind. Many are off camber. All are lined with walls and Armco barriers. Even the straights are kinked and crowned. And there are two very fast downhill compressions and three jumps that max out a car's suspension travel. There's no runoff room. No margin for error. And remembering the course in this weather in just a few laps is impossible, I don't care how much Gran Turismo you've played.

Subaru details BRZ tS, stops short of full-on STI

Fans of the sweet-handling Subaru BRZ awaiting some performance enhancements got their hopes up earlier this month when parent Fuji Heavy Industries dropped some teasers hinting at an apparent STI version, but as was subsequently suspected, the model in question - now revealed in full - stops short of being a full-on STI model.
What we're looking at here is the new Subaru BRZ tS, which incorporates a series of enhancements but leaves the engine alone. Available exclusively in the Japanese Domestic Market, the BRZ tS package includes a thicker driveshaft, a front lip spoiler, Brembo ventilated brake discs packed inside 18-inch wheels and a smattering of STI logos inside and out. STI has also upgraded the suspension components, retuned the stability control and exhaust note and enhanced the interior with some carbon and Alcantara touches. An additional GT package includes further upgrades, most noticeably the giant rear wing (made of carbon fiber) shown above, black-painted alloys and Recaro bucket seats.
Only 500 examples of the BRZ tS will be offered in Japan, with no more than 250 of those outfitted with the supplementary GT package. Here's hoping Subaru gives us a taste on this side of the Pacific as well - or better yet, maybe they'll quit joking around and give us the full-on STI already.