The Japanese yen is currently causing lots of problems for Japanese automakers. When the yen is weak, profits go up for Japanese companies that make most of their money by exporting vehicles to other countries. Conversely, when the yen is strong - as it is right now, having hit its highest valuation in 13 years - profits diminish. Subaru
is just one of the automakers that's finding it tough to make a buck (or a yen) these days, and it has responded by indefinitely delaying the launch of its oil-burning engine option
in the Impreza
for the UK market. This news likely comes as a major blow to European dealers
, considering that diesel
engines handily outsell their gasoline siblings when they do manage to go head-to-head. Still, it's just as well that it'll be delayed as it would be priced out of the market if launched on schedule. Japanese officials have already called on the government to intervene
by lowering the value of the yen, and if that happens, Europeans will finally get their diesel Subarus.