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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.

10 of 18 midsize SUVs earn 'good' IIHS side impact safety rating

It's not terribly surprising that midsize SUVs earned better safety ratings than small SUVs in the latest side-impact tests performed by the Insurance Institute for Highway Safety (IIHS). Just how much better they scored, on the other hand, certainly raises an eyebrow. Ten out of 18 midsize SUVs earned the highest rating of 'good' in the stringent new test, altered for vehicles starting with the 2020 model year with a heavier barrier (4,200 pounds) that moves at a higher speed (37 miles per hour) and is fitted with a hard honeycomb frontal structure. By way of contrast, just one out of of 20 small SUVs earned a 'good' score.  SUVs that receiving 'good' scores were the Ford Explorer, Infiniti QX60, Lincoln Aviator, Mazda CX-9, Nissan Pathfinder, Subaru Ascent, Toyota Highlander, Volkswagen Atlas, Volkswagen Atlas Cross Sport and Volkswagen ID.4. For EV fans, it's worth noting the ID.4 was the only electric vehicle included in the test. The Buick Enclave and Chevrolet Traverse scraped away with 'acceptable' ratings while the Honda Passport, Honda Pilot, Hyundai Palisade, Jeep Wrangler 4-door, Kia Telluride and Nissan Murano were deemed merely 'marginal' in the tough new test. Only two models — the Mazda CX-9 and Volkswagen ID.4 — earned a "Good" rating in every test category.  Interestingly, the Jeep Wrangler would have scored a 'good' rating if it were equipped with side airbags for the rear seating positions. It would likely be an engineering challenge to equip its removable top and/or doors with airbags, but the lack of that safety feature allowed the head of the rear passenger dummy to hit the vertical support of the top. Otherwise, the Wrangler scored good ratings across the board. The new Ford Bronco, which makes more allowances for side-impact safety, has not yet been tested.  The popular Hyundai Palisade and Kia Telluride SUVs stand out in the test with 'poor' ratings for driver pelvis injuries. The Nissan Murano, a vehicle last redesigned for the 2015 model year, was the only vehicle tested that received a 'poor' rating for its structure and safety cage. Videos of the tests of 12 of these 18 SUVs can be found on the IIHS' YouTube page. Related video: Green Buick Chevrolet Ford Honda Hyundai Infiniti Jeep Kia Mazda Nissan Subaru Toyota Volkswagen Safety Crossover SUV IIHS Insurance Institute for Highway Safety

Subaru is bringing a trio of STI concepts to the Tokyo Auto Salon

The Tokyo Auto Salon is almost upon us (or our Japanese counterparts at any rate), and Subaru has no intention of sitting it out. To that end, its performance division Subaru Tecnica International is preparing a slate of new show cars for the tuner expo. Of the trio that STI has in store for the show, the only one it is showing us so far is the STI Performance Concept pictured above – and we've already seen that one. Based on the BRZ and festooned with all manner of performance upgrades (and an enticing matte blue wrap), it was presented at the New York Auto Show this past April. But there are two more that we have not seen yet. Most intriguing is the proposed XV Hybrid STI Concept, but ostensibly combines the rugged approach of the XV Crosstrek – in hybrid spec no less – with the performance upgrades we've come to expect from the WRX STI. Where STI show cars typically appear in blue, this one is slated to appear in white with orange accents and an interior in orange and beige. It still promises a slew of aero enhancements, along with an upgraded suspension. Alongside the BRZ and XV concepts will be a Levorg STI as well, based on the wagon that Subaru sells in Japan and Europe. This one'll appear in WR Blue Pearl with a sportier front end, 18-inch alloys, specific dampers, and a two-tone interior in burgundy and black. Joining the concepts at the Subaru stand will be a quartet of racing models – two based on the BRZ and two on the WRX STI. Related Video: Exhibition Outline of Tokyo Auto Salon 2016 Tokyo, December 24, 2015 – Fuji Heavy Industries Ltd. (FHI), together with Subaru Tecnica International Inc. (STI)*1, announced its exhibition at the upcoming Tokyo Auto Salon 2016 with NAPAC (Japan Car Parts and Aftermarket Promotion Association), which will be held January 15th to 17th, 2016 at the Makuhari Messe in Chiba prefecture. At the Subaru booth will be concept models such as the "STI Performance Concept" which signifies STI's core business areas, "Levorg STI Concept" and "Subaru XV Hybrid STI Concept". The "WRX STI NBR Challenge 2016", a racing car for 24 Hours Nurburgring endurance race in 2016 and the "Subaru BRZ GT300 2016" for Super GT race will also be exhibited. At the press conference on January 15th, 2016 Subaru Motorsport Activities will be announced. The special site for Subaru Auto salon (http://www.subaru.jp/tas2016/) will be opened.