Currently reading: Diesel Subaru Impreza delayed

Struggling Yen causes Subaru to postpone crucial diesel hatch

The long-awaited diesel Subaru Impreza UK launch has been delayed indefinitely due to the yen exchange rate, which hit its highest level in 13 years last Wednesday.

Sources inside International Motors, Subaru’s official UK importer, admitted that the company had no choice but to delay the vital diesel model until the Yen rate drops.

“At the current rate we would have to charge vastly more than we can justify for the diesel Impreza if we were to make a profit. As a result we can’t guarantee when the car will go on sale as we can’t predict when the economy will change.”

Subaru is not the only company suffering as a result of the poor exchange rate. Takeo Fukui, Honda’s chief executive, called on the Japanese government to ‘move a bit more swiftly’ to stabilise the Yen after the company announced that it could make a second-half loss. Toyota has also posted its first operating loss since 1941.

Though the Japanese government has intervened in its currency rates in the past, there is no guarantee as yet that any action will be taken in the current crisis.

Vicky Parrott

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Symanski 4 January 2009

Re: Diesel Subaru Impreza delayed

SpecB wrote:
Ireland have a huge government purchase tax on new cars.

One of the huge semiconductor manufacturers were interested in my skills and were keen for me to visit and have a look round. When I found out how expensive it was to run a performance car that was it finished for me, no matter how good the job was.

Although this country is getting much much worse, with councils putting dangerous bumps which do nothing but increase the wear on your car, stupidly low speed limits where there are no dangers, cameras everywhere, and at the total ignorance of any real dangerous driving, we should at least be thankful that it's not prohibitively expensive to buy a performance car. My own view is that a performance car gives you options to avoid the accident. Not only can you quickly speed up to pass someone (ideal on motorways when you're getting out the way of someone joining) but you've got the ability to swerve and keep control. Plus the obvious that they have better brakes and can stop much quicker.

Let us not forget all the improvements that car manufacturers have made with ABS, airbags, and more rigid structures have in return brought real and true reductions in accidents and road deaths. Engineering has improved our roads. A fact that unfortunately our politicians never acknowledge.

SpecB 4 January 2009

Re: Diesel Subaru Impreza delayed

Ireland have a huge government purchase tax on new cars. If you were to buy one as a personal import then you would not pay this - only the VAT and UK tax and it would bring the price down somewhat. I once imported a Volvo from Ireland (albeit the exchanges were somewhat better) and the price including UK VAT and tax was £18k as opposed to £24k from a UK dealer on a £28k list.

Symanski 4 January 2009

Re: Diesel Subaru Impreza delayed

roadtester wrote:
Yes - I know Japan is RHD

Didn't think you wouldn't, but there are some who may not. Hence better to ensure it's clear.

roadtester wrote:
The Japanese market doesn't usually buy diesels,

Good point.

roadtester wrote:
Malta and Cyprus as they're v. small

I was talking to one of the car supermarkets and apparently these are one of their sources for cars! So why is Malta and Cyrpus so inexpensive?

roadtester wrote:
Ireland-only major model variants

What's surprising is the price on the Subaru Ireland's website. While I can't see the diesel model, the base model is Euro 21,495, in the UK it would be £ 12,723. Diesels are always just that bit more expensive.

But what's really surprising is the price of the STi in Ireland - Euro 72,750! UK it's £ 26,038. Although when the STi was introduced it was £ 25,000 and then after getting reviewed in all the magazines it's price went up by £ 1,500! Point is that with Ireland being more expensive (exchange rate is 1:1 at the moment) nobody in their right mind import from Ireland.