2005 Subaru Impreza Wrx Sti on 2040-cars

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Will more efficient tech mean higher prices for Subaru?

If the latest ruling by the California Air Resources Board holds, then Subaru at least must build a plug-in hybrid in the coming years to comply with the Golden State's regulations. Fuel economy looks to improve across the board for the brand, though, thanks to $780 million going into the development of cleaner powertrains for this fiscal year alone. However, buyers might have to pay more for a Subie in the future after this boost in green spending. "Related costs are going up more than expected, bringing the profit margin downward," Fuji Heavy Industries President Yasuyuki Yoshinaga said to the Nihon Keizai newspaper in Japan, according to Automotive News. "We are a small company. We do not benefit as much from economy of scale as bigger companies, so we will have to make up for the increased costs by raising our brand value." At the moment, Subaru's electrified lineup in the US comprises just the XV Crosstrek Hybrid, but the company is reportedly planning to add more. Plus, Subie also wants to make its internal combustion engines more efficient. According to Automotive News, all of the brand's mills are getting direct injection by 2016, and cylinder deactivation and lean combustion cycles are on track for 2020. Earlier rumors also suggested that the automaker might bring the turbocharged four-cylinder boxer to more products, as well. While these more efficient models might cost more, Subaru must carefully maintain the balancing act of introducing the technology and keeping sales growing. As of May 2015, the brand had 42 straight months of year-over-year growth in the US and had record sales in the country last year. The company has already decided to significantly boost production capacity at its Indiana factory in hopes of keeping the good times rolling.

Watch Higgins' mind-blowing Subaru WRX STI Isle of Man record lap in first-person

Have you gotten sick of Subaru and the Isle of Man? Good, we'd hope not, because of all the videos we've posted so far, today's is the crown jewel. In-car, around the notoriously treacherous race track, with commentary from David Higgins himself.
It gets better, though. Overlaid with the video is the same biometric data that we showed you last week. The result is a heart-pumping, 22-minute video of the record-breaking sprint around the entirety of the Isle of Man TT circuit at a truly wild pace. Higgins commentary, meanwhile, simply adds to the experience of hurtling across the landscape. Subaru has also put together a second video, highlighting the WRX STI that was used in the lap.
You can view both of those videos, as well as a short press release from Subaru, below. Scroll down and take a look.

Subaru's first hybrid drawing close

In 2011 Subaru parent company Fuji Heavy Industries confirmed that a hybrid Subaru would debut this year. Ever since, there's been speculation about what kind of technology the gasoline-electric hybrid would use - Subaru's own or some version of the Toyota Hybrid Synergy Drive, which car would debut the new system - Forester, Legacy, or Outback - and whether it would come to America or be a Japan-only model.
A report in The Detroit Bureau says that whatever that first model is, it could be shown as soon as the New York Auto Show, and while the company feels it's a must-have offering for the Japanese market it will also come to the US. It will have a Subaru-developed mild hybrid system that could have been previewed by the Hybrid Tourer concept shown at the 2009 Tokyo Motor Show, and is not expected to be able to drive on electric power alone. The Hybrid Tourer used a direct-injected, 2.0-liter boxer engine connected to a CVT and assisted by an electric motor rated at 13 horsepower. Subaru has yet to give anything away about the details of its hybrid plans, so we'll look to New York for the long-awaited unveil.