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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 confirms 2015 WRX STI to grace Detroit show stand

Now that we've seen and driven the 2015 Subaru WRX, it's time to set our sights on the car's more powerful and traditionally massively winged counterpart: the STI. And while a few rumors about the new STI have already leaked, Subaru today confirmed that we'll be seeing the hotter 'Rex at the Detroit Auto Show later this month. Hot diggity.
Last we heard, the new STI will still use a turbocharged, 2.5-liter boxer-four (remember, the standard WRX uses a version of the 2.0-liter engine found in the Forester) producing something like 300 horsepower and 290 pound-feet of torque. What's more, don't expect the STI to hatch a five-door variant - Subaru recently told us that there are no plans to offer anything beyond a sedan bodystyle for both versions of the WRX. Sad trombone, we know.
That said, if our time with the 2015 WRX sedan is anything to go by, this new STI should be pretty rad. The new WRX is significantly sharper than the outgoing model (in terms of driving dynamics, anyway - it's still a pretty ugly little thing), and we fully expect the STI to be a bulgier, harsher, more powerful and aggressive version of the already awesome street-legal rally car. We're just hoping it will be offered with WRC-correct gold wheels, too.

2020 Subaru Crosstrek gains more equipment and a slightly higher price tag

Subaru gave us a brand-new Crosstrek for the 2018 model year, and we liked it. Last year was the year of the plug-in hybrid Crosstrek, and in general, we liked that one too. Those players in the 2020 Subaru Crosstrek lineup remain the same as last year, but Subaru released some notable changes today. The base price goes up collectively by $285 due to a $250 increase in MSRP and $35 increase in the destination charge. That leaves the base Crosstrek with the six-speed manual at $23,155 this year. If you want the automatic it’ll cost you $1,350 more, running the total to $24,505. However, the price increase comes with more equipment added as standard. Automatic transmission models gain the most. If you opt for the CVT, Subaru tacks on its EyeSight driver assistance tech, automatic climate control, auto stop/start, the SI-Drive powertrain management system and door locks that automatically engage when put into drive. If you get the manual, though, everything but the automatic door locks go away. Lame. If you want a more luxurious experience with the three-pedal car, you have to opt for the slightly more expensive Premium trim starting at $24,205. We think itÂ’s worth the extra coin, though. Pricing for the Crosstrek Hybrid only goes up by $185, leaving that carÂ’s base price at $36,155 for 2020. Nothing new is coming to that model for the new year. However, there is one new feature coming to every trim of Crosstrek we havenÂ’t mentioned yet. A rear seat reminder will be standard on all 2020 models, a safety feature Subaru has been adding to some of its other models for the new year. Availability for the 2020 Crosstrek is somewhat vague, as Subaru says theyÂ’ll arrive in dealers “later this year.” WeÂ’ll suggest you watch out for them come late November or December if youÂ’re in the market for a new Crosstrek.