[frankamartin]

Although the quarterly finance results are not concerned with Solterra, I think most people are concerned with the health of the company. Fiscal years in Japan begin on April 1, so this is the first quarter of the fiscal year ending in 2023 (or FYE2023). In May the corporation predicted a 27.5% increase in revenue, 121.1% in profits along with a 28.1% Global unit sales from 734,000 to 940,000.


Consolidated Financial Results for the First Quarter of FYE2023
(April 1, 2022 to June 30, 2022) Update: August 5, 2022

(100 Millions of yen)	FYE2022 1Q Results	FYE2023 1Q Results	Change	%
Revenue	6,352	8,341	1,989	31.3%
Operating profit	295	370	74	25.2%
Profit before tax	343	384	42	12.1%
Profit for the period attributable to owners of parent	185	272	87	47.0%
Consolidated unit sales (1,000 units)	175	196	21	11.7%
Overseas	151	175	24	15.9%
Japan	24	20	−4	−14.8%
SUBARU exchange rate	¥109/US$ ¥131/EURO	¥125/US$ ¥134/EURO

While production constraints continued due to the global shortage of semiconductors, global production increased 11.7% to 205,000 units. Production in Japan rose 15.3% to 135,000 units, while production in the U.S. grew 5.4% to 70,000 units. Global vehicle sales increased 11.7% to 196,000 units, led by sales growth in Subaru’s key U.S. market.
Due to the increase in vehicle sales and other factors, consolidated revenue rose 31.3% to 834.1 billion yen.
As positive factors such as the effects of foreign exchange rates and the growth in unit sales more than offset a steep rise in raw material prices and an increase in SG&A expenses, operating profit rose 7.4 billion yen to 37 billion yen, profit before tax grew 4.2 billion yen to 38.4 billion yen, and profit for the period attributable to owners of parent increased 8.7 billion yen to 27.2 billion yen.
===================================================
Comments on differences between results and forecast for the year
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(1) Revenue in JPY went up 31.7% while unit sales went up 11.7%. That must mean the vehicles are selling for more and the exchange rate of JPY to USD has changed to make the JPY the lowest in over two decades. The forecast for the fiscal year was that revenue would increase by 27.5% and unit sales would increase by 28.1%.

(2) Overseas sales went up, but Japanese domestic sales went down. The forecast was that both would go up.

(3) The report states Global vehicle sales increased 11.7% to 196,000 units, led by sales growth in Subaru’s key U.S. market.

This comment makes no sense to me and is total disagreement with the Flash Report which clearly shows a decrease in sales in every country. Some weird accounting going on here.

 

[R P]

To keep our Subaru brand alive and well, will need more help from Toyota. Best would be if they would fully buy them out, and give them full support with their engineering and manufacturing. Has worked well with VW and all their brands, Porsche, Audi, etc., who share parts and platforms.

 

[Ducatista]

To keep our Subaru brand alive and well, will need more help from Toyota. Best would be if they would fully buy them out, and give them full support with their engineering and manufacturing. Has worked well with VW and all their brands, Porsche, Audi, etc., who share parts and platforms.

Not sure this is a good idea. I like Toyota a lot, however, they are already the most indebted company in the world and they haven't yet put as much funding/investments towards EV developments as VW has. I think there might be some bumpy roads ahead for both companies. Subaru definitely needs to electrify more (whether full BEV or PHEV). When the 2024 Forester comes out (due for full re-design) they better have a hybrid and PHEV version. Beg Toyota for the RAV4 Prime system if need be. Same for the 2024 Crosstrek which will also be due as all new. The current hybrid is sold in such limited numbers and locations.

In my opinion, if companies can offer PHEVs with 100km range and ability to operate in pure EV mode (Hyundai/Kia's PHEVs don't truly function this way, RAV4 does), I think that is a game changer for anyone on the fence about BEV or concerns because of places they live or visit often. Remote areas, where charging sucks and is only possible at home. You'll get all these customers since Subaru is all about driving off the beaten path. Allows all daily activities on battery charged at home and no concern for the long trips into civilization or off-road in the woods.

 

[frankamartin]

To keep our Subaru brand alive and well, will need more help from Toyota. Best would be if they would fully buy them out, and give them full support with their engineering and manufacturing. Has worked well with VW and all their brands, Porsche, Audi, etc., who share parts and platforms.

Toyota and Subaru Indiana plants are only 175 miles apart. They may co-locate some of their EV facilities to get that federal tax break for their customers.

• Toyota Motor Manufacturing Indiana, 4000 Tulip Tree Dr, Princeton, IN 47670
• Subaru SIA: BUS984, Lafayette, IN 47905

TMMI currently assembles the all-hybrid Sienna minivan, Highlander/Highlander Hybrid SUV and Sequoia full-size SUV, and has the capacity to assemble more than 420,000 vehicles annually. Subaru of Indiana Automotive (SIA) is home of North American production for the Ascent, Impreza, Legacy and Outback models.

I am still confused by the following statement made in the August 5, 2022 update (linked below), as there was no sales growth in the US market (or anywhere else in the world for that matter).

Global vehicle sales increased 11.7% to 196,000 units, led by sales growth in Subaru’s key U.S. market.
Consolidated Financial Results for the First Quarter of FYE2023 (April 1, 2022 to June 30, 2022)