2006 Subaru Outback R L.l. Bean Edition Wagon 4-door 3.0l 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.

Subaru WRX STI S207 limited to 400 units in Japan only

Japanese Subaru fans are getting quite a treat in time for Halloween. The brand is unveiling the WRX STI S207 edition at the Tokyo Motor Show. Unfortunately for brand devotees elsewhere, the market-exclusive, high-performance model is limited to just 400 units there. For such a small run of cars, the folks at Subaru Tecnica International are adding quite a bit to take the STI's performance to new heights. Among the upgrades, the 2.0-liter, turbocharged boxer now makes 323 horsepower and 318 pound-feet of torque – a healthy jump compared to 305 hp and 290 lb-ft from the 2.5-liter engine in the US-market version. Beyond the extra power, the sedan also wears a load of parts to improve chassis stiffness and a DampMatic II adjustable front suspension from Bilstein. Styling sees some slight tweaks with a red-outlined mesh grille, chin spoiler, 19-inch BBS wheels, and a redesigned rear bumper. Inside, the front passengers are held tight in leather-trimmed Recaro seats. If the 400 units aren't exclusive enough, Subaru technically breaks the S207 into three special editions. A planned run of 200 units will feature the NBR Challenge Package that's inspired by the company's class victory in the 2015 Nurburgring 24 Hours. It adds a carbon fiber rear spoiler, black wheels, red seatbelts, and an Ultrasuede-covered steering wheel. A hundred of those are the NBR Challenge Package Yellow Edition that come exclusively in Sunrise Yellow with black-painted door mirrors and side sills. Depending on the version, prices before Japan's consumption tax would be between $46,050 and $48,950 at current exchange rates. Related Video: STI Releases "S207" Limited-Edition "WRX STI" in Japan October 28, 2015 Tokyo, October 28, 2015 – Subaru Tecnica International (STI),*1 the motorsports division of Fuji Heavy Industries, will launch a limited-edition model based on the "WRX STI" on December 1, 2015. Just 400 units of the model, dubbed the "S207", will be available. Taking the WRX STI as its base, this complete car from STI features exclusive engine and suspension tuning as well as distinctive interior and exterior design. Embracing the STI concept of offering the ultimate in road driving, the S207 stands at the pinnacle of the STI complete car lineup and aims to be the world's most enjoyable vehicle, providing a feel-good experience to all those who travel in it regardless of road conditions and enhancing driver skill. Special engine tuning boosts maximum power output to 328 PS.

Toyota recalls another 2.9 million vehicles over Takata airbags

Subaru, Mitsubishi and Hino doing recalls, too.