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Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.

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

2015 Subaru Impreza gets visual tweaks, added refinement

While our love for the Subaru Impreza is mostly reserved for its turbocharged WRX and STI models, there's still a fully competent, well-rounded package in the base model, now in its fourth generation. In order to keep it competitive, Subaru has given the Impreza a light refresh for the 2015 model year, and while the car hasn't changed much mechanically, there are a number of thoughtful updates in store for the revised model.
Most noticeably, the front end has been touched up, with a revised lower fascia that's a bit more aggressive than before, nicely incorporating foglamps on higher-end models. Around back, not much has changed, though there's a new lip spoiler on sedan models to improve aerodynamics. Inside, a new infotainment system is available, with a seven-inch color touchscreen, and Subaru's EyeSight driver assistance package can now be had on the Limited models. There's also an updated instrument cluster with an LCD color display, new door and shifter trim, a standard rearview camera, and a few tuning enhancements that allow for a quieter ride, according to Subaru's release.
Under the hood is the same 2.0-liter boxer four-cylinder engine as before, with 148 horsepower on tap, mated to either a five-speed manual or continuously variable transmission. Subaru notes that there's a quicker ratio for the electronic power-assisted steering (that's a good thing), and reminds us that the Impreza is still pretty fuel-efficient considering its standard all-wheel drive, able to achieve 28 miles per gallon in the city, 37 mpg highway and 31 mpg combined.