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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

2019 Subaru Ascent First Drive Review | A three-row do-over

McMINNVILLE, Ore. — The brand-new 2019 Subaru Ascent could very well be called the Mulligan. You may have heard the term used by amateur golfers as a sort of do-over for an egregiously bad first shot. But in the case of the Ascent, Subaru's largest-ever vehicle, it means that the Japanese automaker gets one more chance to build a successful three-row crossover for America. Instead of trying to forget the unloved and slow-selling Tribeca, we get the sense that Subaru wants to keep that massive failure at the top of its collective mind. And we also got the sense that Subaru's engineers and product planners are confident that this time, they've hit a perfect drive off the tee — if not at Pebble Beach, then at least at one of the thousands of reasonably priced golf courses dotting the landscape of suburban America. All the pieces of the crossover puzzle are in place: seven- and eight-passenger seating options, a sizable cargo area, standard all-wheel drive, and class-appropriate fuel mileage estimates. But, this being a Subaru, the manner with which the Ascent hits its targets varies a great deal from many of its competitors. In place of a naturally-aspirated V6, as found in the Honda Pilot or Toyota Highlander, is a turbocharged four-cylinder. And instead of sleek styling meant to attract eyeballs at the expense of usability, the Ascent is boxy, upright, and, well, kinda boring. In person, the Ascent looks like an Outback-shaped balloon that's been blown up a bit too much. An oversize grille is flanked by big headlights at the top of the fascia and faux air intakes molded from matte black plastic at the bottom. It's bland, sure, but it's also not at all surprising that Subaru would err on the side of inoffensive after the design tragedy that was the face of the original B9 Tribeca. And while it definitely shares a strong family resemblance to the Outback, it's sufficiently different enough that buyers aren't likely to confuse the two on the showroom floor. There are some interesting creases and bends in the Ascent's bodysides that add visual interest to what would otherwise be big, flat, sheetmetal stampings. And we have to commend Subaru for its restrained use of plastic underbody cladding, especially since the original Outback helped popularize that trend in the mid-1990s. There's a reasonable glass-to-metal ratio that helps the interior cabin feel airy and bright. Getting into the Ascent's third row is made easier by a large, squared off rear door.

BTW: Subaru's SHARC won the 2012 Design Challenge

Part of the festivities that encompass the LA Auto Show is the annual LA Design Challenge. This year's winner was the Subaru Highway Automated Response Concept, or SHARC. It envisioned automated, zero-emission highway patrolling.
The 2012 edition of the challenge was to envision the future of highway patrol in the year 2025. The goal was to conceptualize a vehicle that would account for the needs of "dynamic urban environments." In addition to Subaru's participation in the contest BMW, General Motors, Honda and Mercedes-Benz, all took part in the challenge.
The SHARC is essentially a law enforcement land-drone. It is entirely automated and runs on renewable energy. Subaru envisioned a future where the Hawaiian Islands are connected to each other by a large highway system. Such an expansive area would require considerable manpower to patrol. The concept of an autonomous patrol vehicle would eliminate the need for a good number of full-time personnel.