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Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive

Subaru Germany sends off BRZ with 100-unit Final Edition

Both the Subaru BRZ and its Toyota 86 Sibling have been confirmed to have an impending second generation (well, confirmed before the pandemic), which means it's about time to start warmly saying goodbye to the current models. They deserve it, because although many will remember the sports cars for their lack of power, they should be remembered as affordable, sharp-looking, flickable sports cars with rear-wheel drive, manual transmissions, and an extremely fun chassis. As first reported by Motor1, Subaru Germany is sending the BRZ off with a limited-run Final Edition. To start, no, the Final Edition does not have any powertrain upgrades. In Germany, the 2.0-liter remains the same at 197 horsepower and 151 lb-ft of torque. A six-speed manual is the base transmission setup, while a six-speed automatic transmission will cost an extra $1,850.  The Final Edition improves where most of the other BRZ and 86 special editions have improved: handling. Subaru added Sachs shock absorbers and Brembro brakes with red-painted calipers. Surprisingly, the BRZ keeps its 17-inch wheels rather than adopting the available 18-inchers. The standard paint for the Final Edition is Crystal Black Silica, not picture here, but the WR Blue Pearl shown above costs the equivalent of an extra $109. And buyers will want to get the blue paint, because the inside has blue accents. The gearshift lever, door trim, instrument panel, and leather steering wheel all have blue stitching. The front leather-and-Alcantara seats are blue and black, while the rear seats are all black, and the floor mats have blue BRZ logos on them. A Final Edition interior badge notifies occupants of its special nature. The most significant part of this release is its limited availability. The Final Edition will be held to 100 units for the German market, which will have an instant collectible on its hands. Before destination, the list price will be the equivalent of about $43,800.

The Subaru Outback is pretty much the entire wagon market

Last year in the United States, Subaru dealers sold a new Outback wagon every 2.94 minutes. Sales were brisker the year before, when dealers sold a new Outback every 2.78 minutes. It cracked the 50,000-units-per-year barrier every year but one starting in 1997, and has shifted more than 100,000 units annually in the United States every year since 2011. From 2013-2015, Kelley Blue Book said the Outback sat on dealer lots for less time than any other car on sale. Here's a starker set of numbers: J.D. Power, as quoted in a CNBC video, put the U.S. station wagon market at 1.4% of the total U.S. car market in 2018. However, the Outback alone was 1.2%, meaning the sales of every other wagon amounted to a minuscule 0.2% of the total car market. Or, as Road & Track put it, "Out of every 20 wagons sold here, 17 are Subaru Outbacks. Damn." Without taking anything away from Subaru, we need to thank Audi again for bringing the RS 6 Avant and A6 Allroad here, even if the best the Ingolstadt brand can do is bleed marketing dollars to scrap it out with every other automaker for, well, scraps.   Related: 2020 Subaru Outback First Drive Review | The big payoff   The CNBC vid doesn't get into how the Outback became the wagon heavyweight save for a mention about it being "part wagon, part crossover" and saying it has "evolved to incorporate more attributes of SUVs and crossovers" like all-wheel drive. That take overlooks the fact that Subaru debuted the jacked-up, bold-faced Legacy Outback at the end of 1994 as a 1995-model-year offering. Subaru designed the Legacy Outback to be a wagon/SUV tweener, well after Subaru was already known for its AWD chops, and before anyone had coined the word "crossover." The Toyota RAV4, now credited as being the first crossover, didn't show until early 1996.