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Subaru posts 15.7% rise in fill-year operating profit

TOKYO — Subaru on Monday posted a 15.7% rise in annual operating profit in the fiscal year that ended in March as it recovered from a raft of product recalls last year, but warned that sales of its cars would take a hit from the coronavirus outbreak. Profit rose to 210.3 billion yen ($1.96 billion) for the year just ended, from 181.7 billion yen a year earlier under international financial reporting standards. It exceeded a consensus estimate of 204.7 billion yen profit drawn from 17 analysts polled by Refinitiv. Global automakers are struggling to recover from the coronavirus, which has pummeled car sales as shelter-in-place orders in many countries clobbered car demand, while plant workers had been left unable to commute to work. Though Subaru and its rivals have begun to restart vehicle factories, anaemic demand, supply chain disruption and social distancing measures at factories are expected to limit output in the coming months. "We saw a limited impact of the coronavirus on our results for the year just ended," Chief Executive Tomomi Nakamura told a teleconference. "But although we have resumed production this month, we are only operating one shift in Japan, and the pace of U.S. output has slowed significantly ... we see many uncertainties related to the virus." As a result, the maker of the Outback and Forester SUV crossovers declined to give an earnings forecast for the current business year, while it slashed its year-end dividend for the year just ended by 61% to 28 yen per share. Some analysts believe industry-wide global auto sales could slump by a third this year and that any recovery will be slow and patchy as job losses and reduced incomes weigh on consumer spending. Subaru, which earns two-thirds of its vehicle sales from the United States, acknowledged that it may take a hit in the coming months as its biggest market struggles get the coronavirus pandemic under control. The automaker saw a 3% rise in global vehicle sales in the year to March to 1.03 million units, bouncing back from last year, when a defective steering component and measures to improve inspection tests had stopped output for two weeks at its sole assembly plant in Japan. The process to restart its U.S. plants would take time, Subaru said, and it expects to produce only around 5,000 units this month, a fraction of last year's 40,000. The virus would result in a global production hit of around 150,000 units, it added.

The 2019 Subaru STI S209 has an intercooler sprayer, here's what it looks like when you activate it

The 2019 Subaru STI S209 gets a lot of features that distinguish it from your average WRX STI including wide body work, a giant wing, additional chassis braces and an extra 31 horsepower. It also brings back a performance gizmo that hasn't been featured in a U.S. market Subaru since 2007: the intercooler sprayer. As the name implies, it sprays cool water onto the air-to-air intercooler when pressing a button. In the case of the S209, that button is one of the paddles on the back of the steering wheel. That triggers the water nozzles hidden in the hood scoop to spray water. You can see what happens in the video below. Note that when the car is in motion, air would carry the spray farther back covering more of the intercooler. Now why would you want an intercooler sprayer? Well, the S209, like all WRX and STI models, uses an air-to-air intercooler to cool off hot air coming from the turbocharger on its way to the intake manifold. The cooler your air, the denser it is, meaning more oxygen to combine with fuel to turn into more power. The effectiveness of the intercooler depends partly on the temperature of the outside air flowing over the intercooler. If it's really hot out, it's not as effective. So spraying water onto the intercooler can counter this to ensure that the car is making maximum horsepower even in toasty conditions. This also means that although this may feel like some special secret performance-boosting weapon, it's really only effective in specific circumstances, and will just get you back to normal power, rather than make the car noticeably faster on the street. Long track days in the summer and after waiting in line at the drag strip or autocross are the kinds of situations where you could see power diminish due to hot air and a lack of moving air. Normal driving won't necessitate its use nor will driving in cool temperatures. In fact, the S209's owner's manual specifically says not to use the sprayer in temperatures below 41 degrees Fahrenheit because of the risk of frozen water in the tank. That brings us to another aspect of the intercooler sprayer: maintenance. In fairness, there isn't much to maintain, but if you want to use the system, you do need to keep the tank filled. It's located in the trunk where the spare tire would normally be. Inside of course is a water pump that connects to hoses that run water to the front. There is a warning light that will illuminate on the instrument panel if it runs low.

If your TV rats you out, what about your car?

Vizio, the TV manufacturer, recently had to pay a $2.2-million fine to the FTC recently because it was discovered that its sets were collecting data about viewers' watching habits and then using the information for its own benefit. Last year, it was revealed the Samsung smart TVs were busy listening to what was being said, even if the conversations in question had absolutely nothing with switching the channel away from the Matt LeBlanc Top Gear. Nowadays, auto manufacturers seem to be tripping over each other pointing out that they offer Apple CarPlay and Google Android Auto. And more recent phenomenon are announcements—from companies including Ford and Hyundai—that they are offering Amazon Alexa capabilities. You talk. It listens. In late January, General Motors said it is releasing a next-generation infotainment software development kit (NGI SDK) to software developers to write apps for GM cars. The NGI SDK includes native Application Program Interfaces (APIs) that allow access to expected things - like oil life and tire pressure and whether lightbulbs are burned out - but unexpected things, as well. Like the presence of passengers in the vehicle. When your TV set is ratting you out, isn't it likely that your car will? In making the announcement of the NGI SDK, GM pointed out that it has the largest connected fleet on the road, some 12-million vehicles. The company also noted: "From 2015 to 2016, GM has seen data usage by customers increase nearly 200 percent. Mobile app use for GM vehicles also hit an all-time high in 2016, with more than 225 million interactions." Is it not plausible that they know more those interactions than simply the number of them? GM's privacy agreement is like most privacy policies, which boils down to: You use it (the device, software, etc.), you potentially give up a portion of your privacy. While on the subject of apps, coincident with this year's CES, Subaru announced that it has added eight cloud-based apps to the STARLINK multimedia system in the 2017 Impreza. Some are familiar, like Yelp. Some are a bit narrow in focus, like eBird, which was developed by the Cornell Lab of Ornithology for birdwatchers. And one ought to give a bit of pause: RightTrack. According to Subaru, "RightTrack Test Drive from Liberty Mutual Insurance monitors driving habits and provides customers with tips on driving safer to help lower their insurance rates and improve their safe driving skills." Or said more simply: You drive. It watches.