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Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru

Subaru recalling 32K Imprezas for potential airbag fault

Following a preliminary evaluation by the National Highway Traffic Safety Administration in April 2015, Subaru is recalling 32,400 examples of the 2012 Impreza sedan and hatchback to repair the Occupant Detection System. The affected vehicles have production dates between April 21, 2011, and February 16, 2012. However, the WRX and STI are excluded from this campaign because they use a different part. The Impreza's problem concerns the front passenger seat's Occupant Detection System. In these models, the part uses capacitance to determine if someone is present and activates the airbag. According to the documents submitted to NHTSA (as a PDF), if the person sitting there uses a device plugged into the accessory outlet or touches an electrically grounded part like the metal seat adjuster, the ODS recognizes an increase in capacitance. It can then deactivate the airbag. Obviously, this could be a hazard in a crash, but there would be a warning light showing the safety device as off. To solve the problem, dealers will install a modified Occupant Control Unit. The initial investigation was prompted after 26 complaints to NHTSA about the ODS not working properly. In 2012, Subaru also issued a technical service bulletin that attempted to repair the issue. Related Video: RECALL Subject : Front Passenger Air Bag may not Deploy Report Receipt Date: JUL 01, 2015 NHTSA Campaign Number: 15V419000 Component(s): AIR BAGS Potential Number of Units Affected: 32,400 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU IMPREZA 2012 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain 2012 model year Subaru Impreza 4-Door and Station Wagon vehicles (except WRX/STI models) manufactured April 21, 2011, to February 16, 2012. In the affected vehicles, the Occupant Detection System (ODS) may deactivate if a front seat passenger operates a device that is plugged into the power outlet such as a music player or cell phone, or touches a metal part of the vehicle such as the forward/rearward seat adjuster lever. CONSEQUENCE: If the ODS deactivates, the front passenger air bag will be turned off and the front passenger air bag will not deploy in the event of a crash, increasing the risk of injury to the seat occupant. REMEDY: Subaru will notify owners, and dealers will replace the Occupant Control Unit with a modified one, free of charge. The manufacturer has not yet provided a notification schedule.

2017 Subaru Impreza makes a stand in the compact segment

If the 2016 Honda Civic was a revelation for the brand as a rebuke of the past couple of generations of their brand-and-butter compact, the 2017 Subaru Impreza appears to be on a parallel trajectory for the lauded all-weather performance brand. Unveiled Tuesday at the 2016 New York Auto Show, the 2017 Impreza brings in an all-new platform that is stiffer, sportier, and a much-needed improvement to stay competitive as the segment tightens up. The car features styling cues that are potentially the most attractive we've seen on a non-WRX model since the turn of the century. The car looks downright European in either sedan or hatchback form, stealing much of the thunder that the Mazda 3 and Civic had brought just a short time ago. Its lines are clean all around, the front and rear are largely without aerodynamic clutter, and much of that style is carried over to the interior that gets a much needed refresh. Gone are the overly utilitarian surfaces and buttons; a clear shift has been made to make the car seem on-par with class leaders like the Civic and Mazda 3, albeit with its own distinctive Subaru style. The dashboard seems just as straightforward as before, but packs the necessary technology to remain competitive in the segment. It seems that Subaru has listened to critiques of the outgoing Impreza, and sought out a way to continue the tradition of making AWD alternatives to the mainstream compacts, but this time without compromises on content. Up and down the four-trim model chain (2.0i, Premium, Sport, Limited), standard equipment is greatly improved. Even the standard 2.0i model will come with the necessary power features that anyone would expect, along with a much-needed 6.5" touchscreen interface that dual-boots with Android Auto and Apple Car Play - something that even the base trim Honda Civic LX does not have, and perhaps, that should put Honda on notice. In the very competitive compact segment, content is king. With standard equipment being on par with or exceeding the headlining Civic and Corolla, the added convenience of AWD is the cherry on top in places with cooler climates. Without major changes to the powertrain (slight power gains for the standard 2.0 H4 and an updated CVT), fuel economy perhaps remains to be the only caveat to the Impreza being a class-leading choice. With the current model rated at 28/37 compared to the Civic's 31/42, a slight improvement wouldn't be much in the grand scheme of things.