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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 Forester STI e-Boxer concept arriving at Tokyo Auto Salon

Subaru is bringing a Forester STI e-Boxer and Impreza STI concepts to the 2019 Tokyo Auto Salon. Earlier this year, Subaru revealed its 2019 Forester e-Boxer exclusively for the Japanese market. It has a 2.0-liter flat-four, that works in tandem with an electric motor. The total system output is a rather meager 156 horsepower and 187 pound-feet of torque. Subaru says this concept has further refined e-Boxer running gear, which probably means smoother operation, not more power. In fact, this Forester STI looks more like a "tuned by STI" vehicle than a full-on STI. These Japanese tS vehicles (slightly different than U.S. tS vehicles) can be characterized as "STI-lite," which is what this Forester comes off as. As for the rest of the changes, the Forester STI Concept looks pretty rad. The front fascia continues much further down to the ground than before with a blocky look, broken up by the yellow accent as you move even lower. An STI badge sits proudly on the totally blacked-out grille, similar to the Forester Sport but with a different mesh design. Lower and design-heavy side skirts amp the look up a bit more along the sides, while the rear continues the sporty theme with more yellow accents. An exclusive "Fighter Gray" paint color is used on this STI as well. Surprisingly, the exhaust looks exactly the same as a normal Forester. The only actual performance upgrade Subaru is telling us about now comes in the form of big Brembo brakes. Six-piston calipers are covered by 19-inch performance aluminum wheels. We're offered little to no description of the Impreza STI before the show. Just from appearances, it looks like Subaru designed a body kit for a normal Impreza, then changed up the front and rear a bit. The dual-center exhaust is a nice performance touch. Pictures of the interior aren't available now either, but Subaru says it's "Bordeaux" with "high texture." The looks are there, but without any performance information, this doesn't appear to be the STI hatchback we've been wanting for in the U.S. There will also be a Subaru Levorg (Impreza/WRX wagon) and a WRX STI made with custom STI parts. All the Subaru cars will go on the stand at the Tokyo Auto Salon on January 11 next year, so the wait won't be too long to learn more about these vehicles. Related video:

Here's the story with the Chicken Tax

Quiz America's auto enthusiasts about the vehicles they most want to see in the US market, and for every one that doesn't respond with a French hot hatchback or some diesel-powered offering, there'd be at least three that ask for some small, imported pickup truck. That won't happen, though, and we have the Chicken Tax to thank. This damnable bit of legislation affixes a 25-percent tariff to any light truck not built in the United States. That's why Honda, Toyota and Nissan build all their trucks in the United States, and it's also why pickups like the foreign-built Volkswagen Amarok, shown above, or the long-rumored Mahindra pickup aren't offered here. Wired has the story on the roots of the Chicken Tax, including how one Japanese manufacturer got around it and even delivered a vehicle to one of our country's presidents. Head over and check it out.