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Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

Is the Subaru BRZ STI being teased really only a tS version?

Teaser images of a purported Subaru BRZ STI were uncovered last night and sent the internet into a collective state of hysterics. That's not hugely surprising, though, considering the reverence that the BRZ, along with its fraternal twins, the Scion FR-S and Toyota GT86, have garnered from the automotive media. The sole sticking point, really, has been its mere 200 horsepower. People have been chomping at the bit over a higher output version of the sublime rear driver.
Those same people may be in for a disappointment, though. See, the BRZ STI that was teased last night might not be a real STI. Instead, it's looking like it might be a BRZ tS. According to 7Tune.com, the timing of the photos posted on Subaru's website lined up with Subaru's 86 Festival at Fuji Speedway, where the Subaru BRZ tS debuted. Despite wearing STI badges, the tS isn't the full-tilt STI model we've been hoping for. Instead, you can think of the relationship between tS models and STI models as sort of like the difference between a BMW 3 Series M Sport and a BMW M3.
Certainly, the speccing of the tS supports that idea. The engine of the BRZ remains untouched in both tS models, which is one of the primary things we expect a full-bore STI to address. A number of interior and exterior styling items have been added, along with Bilstein suspension pieces and six-pot Brembo brakes. The tS sports two different trim levels, with the higher end using Recaro seats, black alloy wheels, and a carbon-fiber rear spoiler. The base tS features silver wheels, standard seats, and all the same suspension and brake upgrades. Adding fuel to the fire that these are not the true STI models is the limited production run - Subaru will only build 750 tS cars.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade