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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Subaru WRX S4 gets big power bump in Japan

A month after originally teasing it, Subaru is finally unveiling its WRX S4 model for Japan. It's a bit more than just a plush take on the sport sedan, because Subaru is fitting a more powerful version of the 2.0-liter, turbocharged boxer four-cylinder engine than we get on these shores.
The company says that S4 stands for "'Sports performance', 'Safety performance', 'Smart driving' and 'Sophisticated feel," and it certainly looks like this Rex ticks all of those boxes. The most surprising feature is the Japanese model's 2.0-liter turbo engine boasting 296 horsepower (221 kilowatts) and 295 pound-feet (400 Newton-meters) of torque in this application. That's quite a healthy upgrade over the 268 hp and 258 lb-ft that Americans get in the standard WRX, and it's even nipping at the heels of the 305 hp and 290 lb-ft from the STI with a 2.5-liter mill that we get over here.
While extra power is always welcome, enthusiasts might not be so thrilled that Subaru's Sport Lineartronic Continuously Variable Transmission is the sedan's only available gearbox. However, it offers a simulated eight-speed shifting mode when drivers notch the car into Sport# driving mode. Of course, the S4 also packs Subie's trademark all-wheel drive with Vehicle Dynamics Control and Active Torque Vectoring as standard.

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