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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

2014 Subaru Forester XT

Hitting The Mainstream Sweet Spot
The Forester does quite a bit of heavy lifting for Subaru. What was once a plucky little all-wheel-drive utility box has matured into a competitive crossover that accounts for a quarter of the company's total sales in the US. With those numbers continuing to swell even in the third generation's twilight hours, engineers and designers found themselves in the unenviable position of being asked to fix what ain't broke. Rather than reinvent the company's workhorse from the ground up, as we say in our first look at the CUV, Subaru honed the Forester to offer better fuel efficiency, more usable space and a more refined drive.
In doing so, the automaker hopes to toe that delicate line between luring in new devotees to the cult of Pleiades and keeping the brand's longtime fans smiling. While the fourth-generation Forester may have lost some of its trademark pluckiness in the pursuit of a more mainstream existence, there's no denying this is a more sorted vehicle than its predecessors. Make no mistake, the 2014 Forester is keen to carve out a larger chunk of the ever-plumping CUV market for itself, and for the first time in its history, it has the muscle to do so.

2015 Subaru BRZ tS First Drive [w/video]

The Subaru BRZ is a brilliant driver's car: lightweight, rear-wheel-drive, tactile, nimble and fluid at speed. In terms of qualities that allow for dazzling point-to-point performance, it lacks only power and intense mechanical grip. In the US, options for tuning the BRZ to amplify its strengths or diminish its weaknesses are mostly found in the aftermarket. In Japan, meanwhile, driving enthusiasts can start with the factory-tuned model you see above: the BRZ tS. Designed and built with the engineering prowess of Subaru Tecnica International, the limited-edition tS is tuned for track competence over and above that of the base model. The intent of the tS wasn't lost on me as I stared over the front fender towards Turn 1 at Japan's Suzuka Circuit. Not just a proper place to test STI's claims of increased handling brilliance for its BRZ tune, but a perfect one. Suzuka is challenging – fast and technical in equal measure – and a playground for sorting out the margin of improvement from the standard that BRZ I know so well. Wait, Why Am I Here? Of course, Subaru didn't invite me and a half-dozen other motoring journalists to Japan for an academic exercise in JDM hotness. We were there at the behest of STI, as a first step in what will undoubtedly be a deliciously drawn-out expansion of the performance brand in North America. STI started life as the motorsports division for Subaru-parent Fuji Heavy Industries. But chances are good that you, like me, first encountered the three-letter-logo as a Cherry Blossom Red punctuation mark at the end of a WRX road or rally car. The world came to know STI through Subaru's 1990s WRC dominance and prominence in the Gran Turismo franchise. But outside of Japan the significance of the initials was known more as the designation of the top-dog Impreza, rather than a motorsport and performance engineering unit. The company is set on changing that and building STI into a performance brand that's as easily recognizable in America as M and AMG are today. That message was delivered a body in the STI Concept car at the New York Auto Show earlier this week, but as I mentioned then, we don't expect Subaru to turn up with a production-ready BRZ STI next year. First STI will deploy its parts catalog to the US, removing the half-hearted Subaru Performance Tuning parts business in the process. Next, according to a vague timeline presented in Japan, Subaru will offer a car like the tS to US customers in approximately 18 months.