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Subaru suppliers rely on gray market labor

The Subaru Forester is currently the Japanese brand's bestselling model in the US. A new investigation by Reuters is making some scathing allegations about how the popular model is actually made, though. The piece claims that many of Subaru's suppliers in Ota, Japan, are using low-paid foreign workers and asylum seekers to produce components that go into the CUV. The report says that these laborers are coming from places like China and Bangladesh, and they allegedly receive a pittance compared to their Japanese counterparts. Many said that they get about $6.60 an hour, but employment brokers can take a large portion of that pay. At just four suppliers Reuters estimates there are 580 foreign workers, or about 30 percent of the total workforce. The situation has turned Ota into a cultural melting pot because of the significant population of immigrant labor. The problem stems in part from Japan's tiny labor market, and the country's odd asylum system that doesn't allow some applicants to work legally. These suppliers produce many components for the Forester, including the seats, shocks, and fuel tanks. Reuters admits that the businesses have contracts with other Japanese automakers, as well, but Subaru receives the main focus of this piece, which you can read in full, here. When asked for comment about Reuters' report, Subaru of America provided Autoblog with the following statement: "Fuji Heavy Industries does not condone the exploitation of any class of worker, either in its own operations or within its supply chain. FHI expects all employees to be treated fairly, with dignity and respect and to be provided with appropriate workplace protections. The FHI CSR policy respects and adheres to the law and regulations of business as well as upholding human rights and international standards of behavior and the ethical standards of our stakeholders. Our supply chain network has been made aware of our policy and expectations."

2016 Subaru BRZ and STI get Hyper Blue for new limited special editions

Blue fits as well on a fast Subaru as red does on a Ferrari or silver on a Mercedes-Benz. The color just clicks somehow with the Japanese automaker's performance models, and apparently the company knows it. This fall for the 2016 model year, the BRZ and WRX STI are getting new Series HyperBlue limited editions with an exclusive cerulean shade as the major selling point. Pricing is being held until closer to launch. Limited to 500 units, the 2016 Series HyperBlue BRZ is a follow-up to 2015's Series Blue edition. Hyper Blue looks to be a much lighter shade than Subaru's famous WR Blue, but the new color is still fairly attractive. The tone covers the entire exterior but is contrasted with black for the 17-inch wheels, badges, and mirror covers. The exclusive hue is carried inside too for the seat bolsters, headrests, stitching, door trim, and a mix of blue and black leather on the steering wheel. So if you're in, you're all-in. All BRZs get some other tiny tweaks for the new model year, too. A rearview camera is now standard, and Subaru's upgraded 6.2-inch Starlink infotainment system is available. More power is rumored as part of a more thorough refresh for the 2017 update. With production limited to 700 units, a few more Series HyperBlue editions of the 2016 STI are going to be on the street. Although, there aren't as many tweaks for them. Of course, the new color covers the outside, and it's also offset with black on the 18-inch BBS wheels, badges and mirror caps. Blue stitching brings the color into the interior, and Subaru's seven-inch navigation system with a nine-speaker stereo is standard for this version. Related Video: SUBARU TO OFFER LIMITED EDITION SERIES.HYPERBLUE BRZ AND WRX STI MODELS Limited to 700 WRX STI & 500 BRZ BRZ receives upgraded SUBARU STARLINK® Multimedia Rear Vision Camera now standard on BRZ Exclusive Hyper Blue exterior paint and interior trims Cherry Hill, N.J. - Subaru of America, Inc. has announced the 2016 Series.HyperBlue limited edition available exclusively on BRZ and WRX STI models. As a follow up to the 2015 Series.Blue BRZ, the 2016 Series.HyperBlue cars feature exterior paint in Subaru's exclusive Hyper Blue with matching interior trim. Production will be limited to 700 WRX STI and 500 BRZ cars for the United States. Vehicles will go on sale this Fall.

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