2020 Subaru Forester Touring on 2040-cars

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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.

Subaru Crosstrek gets an injection of Baja racer DNA from Crawford Performance

Subaru's idea of updating the Crosstrek is dropping a bigger, 2.5-liter flat-four engine in the engine bay. American tuner Crawford Performance has other plans for the city-friendly crossover. It turned the model into an off-roader enhanced with a lift kit, skid plates, and extra lights reminiscent of Subaru's rallying past, among other add-ons. California-based Crawford Performance knows what it takes to improve a Subaru. It's one of the companies responsible for the Crosstrek Baja Racer introduced in 2019, and it's the only aftermarket parts manufacturer ever factory-backed by Subaru. The suspension lift it developed for the second-generation Crosstrek adds 2 inches of ground clearance to the front axle and an extra inch and a half to the rear. For context, the Crosstrek sits 8.7 inches off the ground when it rolls off the assembly line, so the lift alone raises it above the 10-inch mark. Subaru didn't develop the Crosstrek for hardcore off-roading, so Crawford added tubular bumper overriders on both ends and over both rocker panels, aluminum skid plates that protect vital mechanical components from oily (and expensive) encounters with boulders, and additional lights mounted in front of the door mirrors. Spot lights and 15-inch alloy wheels wrapped by beefy tires ensure you can see what's ahead and effortlessly drive over it. Crawford kept the stock, naturally-aspirated 2.0-liter flat-four engine but Top Gear learned it installed an air-oil separator and intake spacers to increase its output from 152 to 167 horsepower. That's not a huge bump, but it should be enough to make the Crosstrek a little peppier. The four-cylinder still spins the four wheels through a continuously variable transmission (CVT), and it exhales through an upgraded exhaust for a rally car-like sound. Adventurers who want to build a lifted Crosstrek need to set aside $550 for the kit, which includes aluminum strut spacers, strut extensions, and other bits and pieces like sway bar link extensions. Other parts like the skid plates, the air-oil separator, and the tubular add-ons are sold separately. And, of course, you'll need a good set of tires. If you're not a DIYer, Top Gear reported Crawford plans to sell a fully-assembled model positioned between the production Crosstrek and a purpose-built race car. It will cost approximately $35,000 when it goes on sale.  Related Video:    

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.