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Subaru profits fall by half last year among recall maladies

Subaru took a financial beating last year, according to its freshly released earnings report. During the full fiscal year, which ended March 31, the carmaker's operating profits effectively halved. Net income dropped 33% to 147.81 billion yen, or $1.33 billion, and revenue fell 2.2% to 3.16 trillion yen ($28.5 billion). Subaru states that its operating income declined by 48.5% to 195.5 billion yen, or to about $1.78 billion. According to Subaru, this was not only due to a decrease in sales, but also due to recall campaigns. Total production decreased nearly 6% to 989,000 units, and production stoppages at the Gunma plant were partially to blame for that — but Impreza, XV and Levorg sales also sank. The redesigned Forester did start out well in the summer, but sales in the first half of 2018 were more modest with the outgoing generation still in the showrooms. The Gunma manufacturing plant, Subaru's sole factory in Japan, ground to a halt in January 2019 to remedy issues with Forester, Crosstrek and Impreza electric power steering units, and that cost Subaru nearly 10 days of production, corresponding to around 30,000 vehicles. Earlier, there was a 500,000-vehicle recall in Japan due to fraudulent final inspections. Automotive News also lists other recent Subaru maladies, such as a low-fuel warning recall and stop-sale for all U.S-market Outbacks and Legacys, and the earlier, global recall to repair valve springs on the boxer engines of 411,000 vehicles. This particular recall hasn't been problem-free, as there have been cases where subsequent engine failures on BRZ models have been suspected of having been caused by slapdash recall work. There is also a new, large-scale recall in the horizon for Subaru, as a brake light issue on 2008-2017 vehicles necessitates the recall of some 2.3 million vehicles. However, it's not all bleak for Subaru, as U.S. sales are going strong. The carmaker predicts 2019 will be the 11th straight record year, and U.S. retail sales climbed 7.7 percent in April, which was the 89th consecutive month with increased sales. But still, not all Subaru markets are equal: On the North American market, Subaru sold 717,000 vehicles during the past fiscal year, an enormous percentage of its total sales. News Source: Subaru via Automotive News Plants/Manufacturing Recalls Subaru

Subaru punches out 15 millionth Boxer engine

It's a small milestone for our favorite manufacturer of gold-wheeled, all-wheel-drive sedans and crossovers, as Subaru announced that it has built its 15 millionth Boxer engine – a mere 49 years after it installed a tiny, horizontally opposed, four-cylinder mill in the 1966 1000 sedan. The milestone engine powers something a good bit larger than the 1000, which was (ironically considering Subaru today) the brand's first front-drive vehicle. Today's boxer, the so-called FB25 2.5-liter four, was built for the current Legacy and Outback. The 15 millionth Boxer hasn't been the brand's only accomplishment in 2015. The company built its 14 millionth Symmetrical all-wheel-drive system just last month. Subaru has only been at its trademark AWD system for 43 years, and with sales going the way they are, it seems only a matter of time before the Boxer engine is surpassed. Related Video:

Junkyard Gem: 1987 Subaru GL-10 4WD station wagon

Living in Colorado and spending a great deal of time in Denver-area wrecking yards, I see Subaru wagons everywhere. Lots of Subaru wagons. Today's Junkyard Gem, however, is the first GL-10 wagon I've found in such an establishment. I can't find a definitive description of what Subaru buyers in 1987 got with their GL-10 (at the time, the Subaru Leone was sold in the United States as just "The Subaru" with a confusing babel of trim-level codes tacked on). These badges look cool, anyway. This cassette deck would have been considered serious stuff at the time, what with auto-reverse and automatic detection of the prestigious metal tapes that cost twice as much as ordinary cassettes. This car has air conditioning as well, a very rare feature on this generation of Leone. These cars were available with automatic transmissions, but nearly all of the 1980s Leones I find have three pedals. Four-wheel-drive (real four-wheel-drive, including a low-range setting with manual drive selection) was a heavily-hyped Subaru option, not standard equipment, at the time. Under the hood is the boxer-four engine layout we've been seeing in U.S.-market Subarus since all the way back in 1971. This one displaces 1.8 liters and was rated at 90 horsepower. This car's archrival, the Toyota Tercel 4WD wagon, packed a mere 62 horses; prices for ordinary Tercel 4WD and Subaru GL 4WD wagons were similar, but the GL-10 package no doubt pushed the price up well above Tercel levels. These cars weren't anywhere near as reliable as the Tercel 4WD (which, though sluggish, was nearly — but not entirely — impossible to kill) or the Honda Wagovan 4WD, but this one made it to a respectable odometer figure before being retired. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The GL-10 could be had with turbocharging and digital instrumentation, but this wagon has neither. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. All new Leone! Featured Gallery Junked 1987 Subaru GL-10 View 18 Photos Auto News Subaru Automotive History Wagon