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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.

Subaru to return to Isle of Man with 2015 WRX STI hoping to set new record [w/videos]

This is what it looked like when Mark Higgins set the lap record at the 37.75-mile TT Mountain Course on the Isle of Man in 2011 in a Subaru WRX STI. And it will probably look much the same when Higgins returns to the chunk of land in the Irish Sea to with the aim of breaking his record, set at an average speed of 115.36 miles per hour, but he'll do so in a 2015 WRX STI. As in 2011, he'll drive a mostly stock US sedan fitted with a roll cage, race harness, fire suppression system and upgraded springs and dampers. We're sure he'll be hoping to avoid a repeat of "The biggest moment of my life," though. There's a press release below with more information on the coming attempt, including dates, and we've included a video of that "moment" as well as one of the whole record run. Godspeed, Mr. Higgins. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. SUBARU TO DEBUT NEW 2015 WRX STI AT THE ISLE OF MAN TT COURSE AND ATTEMPT NEW FASTEST LAP Thursday 17th April 2014 -- Subaru of America, Inc. announced today that Subaru will return to the fabled Isle of Man TT Races and attempt to beat its own fastest car lap time. The current record of 115.36mph for the iconic 37 3/4 mile TT Mountain Course was set three years ago by Mark Higgins in a (2011) Subaru WRX STI. Higgins will return to drive the new 2015 Subaru WRX STI. The car Higgins will drive is a stock U.S.-spec 2015 WRX STI, with the exception of a roll-cage, race harness, fire suppression system and modified springs and dampers to handle the sustained high speeds of the course. Subaru will also return as a partner with the Isle of Man, renewing its sponsorship of the race. "We are very excited to return for another attempt of the TT course and to be the official car of the TT," said Dominick Infante, National Manager of Product Communications, Subaru of America, Inc. "The Isle of Man is paradise for anyone who appreciates motorsport and there is nothing like the TT road course anywhere else." In his previous attempt on the course, Higgins created one of the most memorable race videos when he had a self-described "moment" at the bottom of Bray Hill at 150 MPH. The video has received almost 10 million views via various media outlets.

Why I chose a Subaru WRX over a BRZ

It was early 2012, and I was ready to get a new car. Not just any car, but the car I had dreamed about for no less than a decade: the Subaru Impreza WRX. There was something about this car that always appealed to me, even before the WRX was sold stateside; originally it was the Impreza 2.5RS that caught my eye. What was so special about the WRX? Well, I loved the idea of having a small car with all-wheel drive and good power, all in a relatively affordable package. It was one car that could do it all. Oh, and that fresh rally blue paint and signature boxer rumble were easy on the eyes and ears. It was a long time coming. I was just about ready to place an order with my Subaru dealer. But wait. What's this? A new kid on the block. Subaru was releasing its long-time-coming, rear-wheel-drive sports car: the BRZ. I was enticed early on when it was announced that Toyota and Subaru would jointly develop a lightweight sports car, and my interest was piqued once I saw the beautiful FT-86 concept. Now I kind of had a tough choice. I still wanted the WRX, but also liked the idea of having a proper sports car with a low center of gravity and low weight. Very different cars, I know, but both offered the fun I craved. I didn't get to drive a BRZ, but I did sit in one and enjoyed the low seating position and crisp feel of the shifter. I could tell it was one car that would feel connected to the road, a true driver's car. After some deliberation and research, I ended up ordering the WRX, my original goal. Why? For one thing, the BRZ was so new that I couldn't get invoice pricing. Plus, with the winters here in Chicago, I really wanted AWD; I was pretty much tired of FWD, and didn't want to risk driving RWD in snowy/icy conditions. Further, the WRX provided usable back seats and plenty of cargo space in the hatchback version (which is the one I chose). To top it off, I loved the power I'd get with the WRX, even though it wouldn't handle quite like the low-slung BRZ. Long story short, it came down to what I mentioned earlier: one car that could do it all. The WRX is a jack of all trades. It offers a nice blend of performance and practicality. Do I have any regrets? Not at all. If my financial situation allowed for it, I would love to have an AWD daily driver and a RWD sports car for occasional use (either a BRZ, MX-5, or S2000), but since I could only afford one vehicle, the WRX was the right choice for me. I liked it so much, in fact, that I upgraded to a 2016 WRX.