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Poor sales prompt Subaru to kill the Crosstrek Hybrid

The Subaru XV Crosstrek is a major hit. It's high off the ground, offers enough seating for five, and has Subaru's iconic all-wheel-drive system, which is exactly what modern consumers want. As we pointed out last year, Subaru posted impressive sales figures thanks to its crossover lineup, which includes the Forester, Outback, and XV Crosstrek. It turns out, though, that Subaru owners aren't interested in the hybrid variant of the crossover, as Subaru plans to axe the XV Crosstrek Hybrid, reports Cars Direct. The discontinuation of the XV Crosstrek Hybrid is due to the crossover's poor sales figures, claims Cars Direct. Subaru introduced its first-ever production hybrid, the XV Crosstrek Hybrid, in 2013 and after just three years the vehicle is being killed. As we pointed out in our review of the vehicle, the hybrid's larger price tag and marginally better fuel economy made it a tough choice over the non-hybrid models. The XV Crosstrek Hybrid starts – sorry, started – at $27,245, while the base 2.0i model has - had - a price tag of $22,445. That's $4,800 more for a vehicle that gets seven mpg better in the city and only three mpg more on the highway at 30 mpg city and 34 mpg highway. We reached out to Subaru for a comment, but haven't heard back yet. We'll update the story when we hear back from the automaker. Related Video: Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: Cars DirectImage Credit: Copyright 2016 Jonathon Ramsey Green Plants/Manufacturing Subaru Crossover Hatchback subaru xv crosstrek subaru hybrid discontinued subaru xv crosstrek hybrid

Subaru ups US sales projections to 500k units

Subaru is going absolutely gangbusters so far in 2014, with growing year-over-year sales every month this year adding to the streak of 33 consecutive months. The prognosis is so positive that the Japanese brand is revising its 2014 forecast to 500,000 vehicles or more, from a previous estimated 460,000. If it reaches the goal, it would be the first time that the automaker hit the half-million mark here.
Subaru has been growing steadily in the US for a while now. Annual sales have increased for the past five consecutive years with 2014 not indicating for that to change. For August alone, the company moved 50,246 vehicles, up 22.37 percent year-over-year, and the business proclaimed it as the best month in its history.
According to Subaru, it believes that the growth for the last two years has been fueled by the latest Forester and XV Crosstrek last year and the new Legacy and Outback this year. "The market is telling us that we are delivering products that consumers want at the right prices," said Thomas J. Doll, president and chief operating officer at Subaru of America. Scroll down to read the company's full announcement.

Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.