It says the currency is 16% cheaper than it should be https://t.co/UpMh8PK8kJ ...

Core Insights - Subaru has adjusted its production and pricing strategy in response to U.S. regulatory changes and tariff impacts, aiming for long-term resilience [3] - Despite lower sales figures and a stronger yen, Subaru's revenue has increased due to improved product/pricing mix and reduced sales incentives [4] - The U.S. remains Subaru's largest market, with sales projected to be slightly down in the upcoming fiscal year [5] Financial Performance - Subaru reported an operating loss of 36.4 billion yen ($233 million) for the quarter ending December 31, 2025, impacted by U.S. policy changes [8] - Tariffs have cost Subaru approximately 21 billion yen, with additional losses attributed to environmental regulation credits and yen depreciation [8] - The full-year net negative impact of tariffs on operating profits is now estimated at 229 billion yen, which is 44 billion yen more than previously forecasted [8] Production and Manufacturing Changes - Production of battery-electric vehicles has commenced at the Yajima Plant, including the Subaru Trailseeker electric SUV co-developed with Toyota [6] - Subaru has relocated the production of the Forester to Indiana and started U.S. production of the Forester Hybrid [7] - The redesigned 2026 Subaru Outback production has shifted back to Japan, allowing for a flexible production system in response to environmental changes [7]

Core Viewpoint - The euro is currently lower against the dollar, and its rebound has been less than expected according to modeled paths, leading HSBC to suggest that the euro appears cheap [1] Summary by Relevant Sections - Currency Performance - The euro has depreciated against the dollar [1] - The rebound of the euro has not met the expectations set by its modeled path [1] - Investment Insight - HSBC indicates that the euro looks cheap at its current valuation [1]