2022 Subaru Outback Limited on 2040-cars

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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.

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

2021 Subaru Ascent Review | One for the faithful

The 2021 Subaru Ascent doesn't really stand above and beyond the crowded field of three-row family crossovers. There are those that make a bolder statement outside, that are more luxurious inside and that are better to drive. Some are even more spacious or versatile. Frankly, it's hard not to point you towards a Kia Telluride, Hyundai Palisade or Toyota Highlander instead. However, the Ascent really isn't for the general three-row crossover-buying population. It's for Subaru's fiercely loyal customers, and specifically the great many who outgrow their Foresters and Outbacks. Previously, if they needed more space and/or seats, they were forced to abandon the brand that A) they were used to, and B) catered to their specific requirements that often involve outdoorsy adventures. With the Ascent, they get that extra space but it comes with the same 8.7 inches of ground clearance and beefy roof rails, an awfully familiar driving experience, and the cabin puts the same emphasis on no-nonsense, user-friendly controls. The Ascent even looks like an Outback, albeit a gigantic one. So although the Ascent isn't for everyone, it should be just right for those already onboard the good ship Subaru. What's new for 2021? There are more standard features this year, all of which enhance safety. The standard headlights on every trim level are now steering-responsive LED units, while the standard EyeSight suite of driver assistance tech gains lane-keeping assistance and lane-centering for the adaptive cruise control system. There are also now seatbelt reminders for second- and third-row occupants. Buckle up kids! What's the Ascent interior and in-car technology like? From the driver's seat, the Ascent's packaging displays Subaru's pragmatic philosophy to car design. All the gauges are easy to see and read at a glance, knobs and buttons are easy to locate — both those of the software-based touchscreen infotainment system and the physical ones on the steering wheel and center stack. There aren't as many clever cubbies as in a Honda Pilot or Toyota Highlander, but there are a grand total of 19 cupholders spread throughout the cabin. Anticipate frequent bathrooms stops. The base infotainment system is a 6.5-inch touchscreen, but moving up to the Premium trim bumps that up to an 8.0-inch unit. The image quality is crisp, the colors bright, and simple tasks like selecting a radio preset are made easy with big virtual buttons.