Author: Subaru Official News

Subaru Corporation Announces Consolidated Financial Results for the Nine Months of FYE2019

February 7, 2019

Subaru Corporation Announces Consolidated Financial Results for the Nine Months of FYE2019

Tokyo, February 7, 2019 – Subaru Corporation today announced its consolidated financial results for the first nine months of fiscal year ending March 31, 2019.

Consolidated global unit sales of Subaru vehicles decreased 5.0% to 762,000 units.
Unit sales in Japan decreased 17.1% to 98,000 units, as sales of Impreza, Subaru XV and Levorg declined, offsetting strong demand for the fully-redesigned Forester launched in July 2018.
In overseas markets, Subaru kept strong momentum on retail sales with growth in its largest North American market driven by the newly-introduced Ascent and the Crosstrek (“Subaru XV” outside North America). On the other hand, consolidated overseas unit sales fell 2.8% to 664,000 units, as deliveries of the Forester decreased before the launch of its fully-redesigned version and deliveries were adjusted to optimize local inventory levels mainly in the U.S. market.
Consolidated net sales declined 2.5% to 2,377.4 billion yen.*1

Operating income declined 49.8% to 153.7 billion yen for factors such as an increase in quality-related expenses due to recall campaigns notified in November 2018 and a decrease in consolidated unit sales. Ordinary income decreased 48.2% to 157.0 billion yen. Net income attributable to owners of parent fell 22.7% to 118.2 billion yen.

Full-year forecasts for FYE2019 are revised from the previous announcement made on November 5, 2018, reflecting factors such as higher raw material costs and decreases in production output and unit sales volume as a result of production halt at the Gunma manufacturing plant due to a defect in the Electronic Power Steering control unit.
Revised forecasts: Consolidated unit sales of 996,000 vehicles, net sales of 3,120 billion yen, operating income of 185 billion yen, ordinary income of 193 billion yen, net income attributable to owners of parent of 140 billion yen.
Currency rate assumptions: 110 yen/US$, 129 yen/euro

Previous Forecasts for FYE2019 (Announced on November 5, 2018)
Consolidated unit sales: 1,041,000 vehicles
Net sales: 3,210 billion yen
Operating income: 220 billion yen
Ordinary income: 229 billion yen
Net income attributable to owners of parent: 167 billion yen
Currency rate assumptions: 110 yen/US$, 130 yen/euro

*1: With effect from this fiscal year (FYE2019), the Company has changed its accounting policies. In the new method, sales incentives are deducted from net sales, whereas they were previously recognized as SG&A expenses.
For comparison purposes, net sales and SG&A expenses of the previous fiscal year (FYE2018) have been recalculated according to the new policies. The recalculated figures of net sales and SG&A expenses for the first nine months of FYE2018 are 2,437.7 billion yen and 305.5 billion yen, respectively, a decrease of 126.9 billion yen each from the originally-reported figures (announced on February 8, 2018). There is no impact of the recalculation on profit figures of the previous fiscal year.

Forward-looking statements in this document including financial and other forecasts are based on the information available at the time of announcement and are subject to various risks and uncertainties that could cause actual results to vary materially.

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Subaru Corporation Announces Production, Japan Sales and Export Resultsfor December 2018 and CY2018 (Flash Report)

January 30, 2019

Subaru Corporation Announces Production, Japan Sales and Export Results
for December 2018 and CY2018 (Flash Report)

December 2018

Units
2018 vs 2017

Domestic production *1

51,759

-15.9%
5th consecutive month of y/y decrease

Overseas Production *2

26,172

+27.2%
6th consecutive month of y/y increase

Global Production Total

77,931

-5.1%
First y/y decrease in 3 months

Passenger Vehicles
7,421
-22.5%
14th consecutive month of y/y decrease

Mini Vehicles
1,752
-24.5%
First y/y decrease in 3 months

Japan Sales Total
9,173
-22.9%
14th consecutive month of y/y decrease

Export Total *3

42,907

-8.4%
2nd consecutive month of y/y decrease

－
Domestic production decreased year-on-year due to changes in plant operation schedules.

－
Overseas production significantly increased year-on-year, boosted by production of Ascent which started in May 2018.

－
Passenger vehicle sales decreased year-on-year, as previous year’s momentum boosted by the new Impreza and the new Levorg declined, offsetting strong sales of the fully-redesigned Forester launched in July 2018.

－
Mini vehicle sales decreased year-on-year due to decreased sales of Sambar and other models.

－
Exports from Japan decreased year-on-year, as domestic production declined due to changes in plant operation schedules.

CY2018

Units
2018 vs 2017

Domestic production *1

659,965

-7.0%
2nd consecutive year of decrease

Overseas Production *2

359,399

-1.1%
First decrease in 5 years

Global Production Total

1,019,364

-5.0%
First decrease in 7 years

Passenger Vehicles
119,330
-17.2%
First decrease in 2 years

Mini Vehicles
29,123
-10.6%
12th consecutive year of decrease

Japan Sales Total
148,453
-16.0%
First decrease in 2 years

Export Total *3

533,001

-2.9%
2nd consecutive year of decrease

－
Domestic production decreased due to a decline in production of the Forester before the launch of its fully-redesigned version in overseas markets, offsetting increased production of Impreza and Subaru XV models.

－
While overseas production had the addition of the launch of the Ascent, the total volume decreased slightly because of decreased production of the Impreza as the momentum of its fully-redesigned version declined.

－
Passenger vehicle sales decreased, as previous year’s momentum boosted by the new Impreza and the new Levorg declined, offsetting strong sales of the fully-redesigned Forester launched in July 2018.

－
Mini vehicle sales decreased as sales of Chiffon and other models declined.

－
Exports from Japan decreased due mainly to decreased shipments of the Forester, offsetting an increase in shipments of Impreza and Subaru XV models.

*1 JAMA (Japan Automobile Manufacturers Association Inc.) report basis (CBU)
*2 Local line-off basis
*3 JAMA report basis

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Restart of production at Gunma Manufacturing Division

January 28, 2019

Restart of production at Gunma Manufacturing Division

Today, Subaru Corporation has restarted production at its Gunma manufacturing plant that had been suspended since the evening of January 16, 2019.*

Subaru restarted operations at the Gunma plant as countermeasure parts for electric power steering units for Forester, Impreza, and Subaru XV models have now become available.
Production of other models has also been resumed.

Impact on Subaru’s consolidated financial performance is currently under study. Subaru will make further announcement if deemed necessary.

* News release dated January 23, 2019 regarding the production halt:
https://www.subaru.co.jp/press/news-en/2019_01_23_6786/

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Production halt at Gunma Manufacturing Divisiondue to component defect in certain models

January 23, 2019

Production halt at Gunma Manufacturing Division
due to component defect in certain models

On January 16, 2019, Subaru Corporation (“Subaru”) identified a possible defect in certain vehicle component used in some of its models manufactured at its Gunma manufacturing plant (“Gunma Plant”). To ensure quality and safety of its vehicles, Subaru halted all vehicle production at and shipment from Gunma Plant on the evening of the same day and has since been suspending new vehicle registration for the relevant Japanese-domestic models in Japan.
The investigation to date has confirmed that the vehicles to which the component in question may have been incorporated (the “Potentially Affected Vehicles”) (Please see below for the Potentially Affected Vehicles) have not been delivered to any customers or retailers in the U.S. The investigation has also confirmed that the Potentially Affected Vehicles have not reached any customers in any countries outside Japan.
Subaru will not deliver the Potentially Affected Vehicles to any customers.

The cause of the possible defect has been identified.
In prospect of obtaining modified components, preparations are now underway at Gunma Plant to restart production targeting next week (as early as from January 28, 2019).

– Component that has been identified to have possible defect:
Electric power steering unit

– Models of the Potentially Affected Vehicles:
Forester, Impreza, and Subaru XV models manufactured at Gunma Plant
(Production of other models is also suspended as they are manufactured using the same production lines.)

– Period in which the Potentially Affected Vehicles were manufactured:
Late December, 2018 – January 16, 2019 *
* Subject to further investigation.
* No vehicle was manufactured during the plant shutdown period for winter holidays (December 29, 2018 – January 6, 2019).

– Risk due to the possible defect:
If the defect were to cause a malfunction, there is a risk that the steering control warning light on the instrument panel would activate, power steering would cease to function, and steering would become sluggish (i.e. greater force will be required to turn the steering wheel). In the event of such malfunction, please contact your nearest Subaru dealer immediately and have the vehicle checked.

– Cause of the defect:
The investigation is ongoing to determine the details of the cause and mechanism of the possible defect.

– Impact on Subaru’s consolidated financial performance
Impact on Subaru’s consolidated financial performance is not yet certain. Subaru will make further announcement if deemed necessary.

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SUBARU Invests in Three Start-up Companies through the SUBARU-SBI Innovation Fund

January 15, 2019

SUBARU Invests in Three Start-up Companies through the SUBARU-SBI Innovation Fund

Tokyo, January 15, 2019 – Subaru Corporation has completed investments in a total of three start-up companies through its SUBARU-SBI Innovation Fund by the end of 2018.

As declared in its mid-term management vision called “STEP,” Subaru aims to become a trusted brand that resonates with customers through its products and services in its automotive and aerospace businesses.
As part of the initiatives to address its customers’ diversifying mobility needs, Subaru established the SUBARU-SBI Innovation Fund in July 2018 with a goal of generating innovation by actively bringing in external expertise and combining it with internal expertise.

The following are the companies that the SUBARU-SBI Innovation Fund invested in:

Company name
Bye Aerospace, Inc.

Head office
Colorado, U.S.A.

Representative
George E. Bye, Founder and CEO

Established
2007

Business
Design, manufacture, and sales of all-electric aircraft

Company name
AEye, Inc.

Head office
California, U.S.A.

Representative
Luis Dussan, Founder and CEO

Established
2013

Business
Development of artificial perception systems for autonomous vehicles

Company name
aptpod, Inc.

Head office
Tokyo, Japan

Representative
Junichi Sakamoto, Representative Director

Established
2006

Business
M2M/IoT software/hardware development, M2M/IoT cloud services, etc.

Related news release:
July 10, 2018 – SUBARU and SBI Investment Establish Private Fund
https://www.subaru.co.jp/press/news-en/2018_07_10_6033/

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Subaru Corporation Announces Production and Retail Sales Plans for CY2019

January 15, 2019

Subaru Corporation Announces Production and Retail Sales Plans for CY2019

Tokyo, January 15, 2019 – Subaru Corporation today announced its annual production and retail sales plans for calendar year 2019.

1. Production
(Units in Thousands)

2018 Result
’18 vs ’17
2019 Plan
’19 vs ’18

Japan Production *1
660
-7%
650
-2%

Overseas Production *2
359
-1%
380
+6%

Global Production
1,019
-5%
1,030
+1%

*1: Includes production of Toyota 86 models
*2: Excludes CKD production in Asia
Production in Japan is projected to decrease 2% to 650,000 units.
In prospect of continued strong sales in North America, overseas production is projected to be 380,000 units, which will be an annual production record.

2. Retail Sales
(Units in Thousands)

2018 Result
’18 vs ’17
2019 Plan
’19 vs ’18

Japan Sales *3

148
-16%
150
+1%

Passenger Cars *4
119
-17%
120
+1%

Overseas Sales

914
+4%
930
+2%

U.S.
680
+5%
700
+3%

Canada
58
+6%
60
+3%

Australia
50
-5%
50
+0%

China
22
-29%
25
+14%

Other *5
104
+7%
95
-9%

Global Sales
1,063
+0%
1,080
+2%

*3: Includes OEM vehicles
*4: Passenger cars excluding mini vehicles
*5: Includes vehicles from CKD production in Asia
U.S sales are projected to be 700,000 units, which will mark the 11th consecutive year of record U.S. sales.
Global sales are projected to be 1,080,000 units, which will mark the 8th consecutive year of record global sales. While production in Japan is projected to decrease 2%, the company plans to achieve the sales growth projections by optimizing vehicle distribution operations.

Forward-looking statements in this document including production and sales forecasts are based on the information available at the time of announcement and are subject to various risks and uncertainties that could cause actual results to vary materially.

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Exhibition Outline of Tokyo Auto Salon 2019

January 11, 2019

Exhibition Outline of Tokyo Auto Salon 2019

Showcasing the STI-tuned “e-BOXER” Forester concept model

Tokyo, January 11, 2019 – Subaru Corporation, together with Subaru Tecnica International Inc. (STI)* , exhibits at the Tokyo Auto Salon 2019, to be held from January 11th through 13th, 2019 at the Makuhari Messe in Chiba prefecture, Japan.

Subaru is showcasing “Forester Advance Sport Concept” and “Impreza STI Sport Concept”, both created in collaboration between Subaru and STI, along with “Levorg STI Performance” and “WRX STI Rally Concept” both equipped with a series of STI performance parts which bring more driving fun and better stability for the cars.

As for racing cars, the class winning “WRX STI NBR Challenge 2018” for 24 Hours Nürburgring endurance race and the “Subaru BRZ GT300 2018” for Super GT race are exhibited.

*: STI: Located in Mitaka, Tokyo, the company manages motorsport activities of Subaru.

Forester Advance Sport Concept
Impreza STI Sport Concept

1
Forester Advance Sport Concept
Reference exhibits

2
Impreza STI Sport Concept

3
Levorg STI Performance

4
WRX STI Rally Concept

5
Subaru BRZ GT300 2018
Race models

6
WRX STI NBR Challenge 2018

7
WRX STI Rally Car for Japan Rally Championship

8
CG ROBOT Racing 2018 (SUBARU BRZ)

◆　Forester Advance Sport Concept / Impreza STI Sport Concept
Forester Advance Sport Concept is an STI tuned concept model based on Japanese spec Forester Advance, which is powered by “e-BOXER”, a power unit utilizing Subaru’s signature BOXER engine and an electric motor in Lineartronic. The model wears “Fighter Gray” exterior color exclusive to this model and 19-inch alloy wheels. An addition of monobloc opposed 6-pot Brembo front brake calipers gives high performance feel to the vehicle.
Impreza STI Sport Concept, based on Impreza 2.0i-S EyeSight, has received a treatment with exclusive parts both inside and outside the vehicle. In addtion, bordeaux red color interior gives premium feel to the car.

◆　Levorg STI Performance / WRX STI Rally Concept
Levorg STI Performance received special treatment with STI performance parts which have been developed through various racing and testing activities by STI. STI showcases its performance parts, such as Flexible Tower Bar, Flexible Draw Stiffener and aero parts, which makes the car more controllable at driver’s will.
Based on WRX STI Type S, WRX STI Rally Concept got exclusive parts such as gold colored 19-inch BBS wheels and RECARO seats and it evokes legendary Subaru rally cars.

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[PDF/382 KB]

All-New Subaru Forester Wins Top ASV+++ Ratingin JNCAP Preventive Safety Performance Assessment

November 29, 2018

All-New Subaru Forester Wins Top ASV+++ Rating
in JNCAP Preventive Safety Performance Assessment

Tokyo, November 29, 2018 – Subaru Corporation today announced that the all-new Subaru Forester, equipped with Subaru’s unique “EyeSight” driver assist system as a standard feature, received the top rating of Advanced Safety Vehicle Triple Plus (ASV +++) in the Japan New Car Assessment Program (JNCAP) preventive safety performance assessment conducted by the Ministry of Land, Infrastructure, Transport (MLIT) and the National Agency for Automotive Safety & Victims’ Aid (NASVA).

From this fiscal year, the JNCAP preventive safety performance assessment newly added a test for Pedestrian Autonomous Emergency Braking Systems (AEBS) in night-with-streetlight conditions and a test for acceleration control systems for pedal misapplication. The Forester scored well in these new tests, as well as in a series of traditional tests, and achieved the ASV+++ rating with a total score of 122.3 points.

First launched in Japan in 2008, EyeSight has now been rolled out globally and cumulative sales of EyeSight-equipped Subaru vehicles surpass two million.
Subaru will continue to enhance its primary, active, passive, and preventive safety technologies under the “all-around safety” principle, which underpins an “enjoyment and peace of mind” driving experience for all drivers and passengers.

Forester
(Japanese Specification)

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Subaru Corporation Announces Production, Japan Sales and Export Resultsfor November 2018 (Flash Report)

December 26, 2018

Subaru Corporation Announces Production, Japan Sales and Export Results
for November 2018 (Flash Report)

November 2018
Jan-Nov 2018

Units
2018 vs 2017
Units
’18 vs ’17

Domestic production *1

56,124

-6.8%
4th consecutive month of y/y decrease

608,206

-6.2%

Overseas production *2

☆
32,819

+17.0%
5th consecutive month of y/y increase

333,227

-2.8%

Global production total

88,943

+0.8%
2nd consecutive month of y/y increase

941,433

-5.0%

Passenger vehicles
9,977
-3.0%
13th consecutive month of y/y decrease
111,909
-16.8%

Mini vehicles
2,176
+16.2%
2nd consecutive month of y/y increase
27,372
-9.6%

Japan sales total
12,153
-0.1%
13th consecutive month of y/y decrease
139,281
-15.5%

Export total *3

48,108

-8.1%
First y/y decrease in 2 months

490,094

-2.4%

☆: November record

－
Domestic production decreased year-on-year, due to changes in plant operation schedules.

－
Overseas production increased year-on-year boosted by production of the Ascent that started in May 2018.

－
Passenger vehicle sales decreased year-on-year, as demand for the upgraded Levorg declined compared to last year, offsetting strong sales of the all-new Forester.

－
Mini vehicle sales increased year-on-year, led by increased sales of the Sambar.

－
Exports from Japan decreased year-on-year, as domestic production declined due to changes in plant operation schedules.

*1 JAMA (Japan Automobile Manufacturers Association Inc.) report basis (CBU)
*2 Local line-off basis
*3 JAMA report basis

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SUBARU started flight test of the prototype of New Utility Helicopter for JMOD

December 25, 2018

SUBARU started flight test of the prototype of New Utility Helicopter for JMOD

Tokyo, December 25, 2018 – Subaru Corporation today started the flight test of the prototype of the New Utility Helicopter for Japan Ministry of Defense (JMOD) at its Aerospace Company Utsunomiya Plant, Tochigi Prefecture, Japan.

This prototype took to the sky at 2：50p.m. by SUBARU’s flight crew from the Utsunomiya Airfield and landed safely after successful 55 minutes flight.

SUBARU has been developing the New Utility Helicopter for JMOD leveraging the SUBARU BELL 412EPX as the platform that has been jointly developed with BELL HELICOPTER, a Textron Inc., USA.

This prototype aircraft will be delivered to JMOD by the end of fiscal 2018 after completion of a series of flight tests by SUBARU. SUBARU will establish a new production line for the New Utility Helicopter for JMOD and the SUBARU BELL 412EPX in its Utsunomiya Plant to expand defense business as well as commercial helicopter sales both for Japan and international markets.

Prototype during the flight test
SUBARU BELL 412EPX
（Base aircraft for New Utility Helicopter for JMOD）

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