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Poor sales prompt Subaru to kill the Crosstrek Hybrid

The Subaru XV Crosstrek is a major hit. It's high off the ground, offers enough seating for five, and has Subaru's iconic all-wheel-drive system, which is exactly what modern consumers want. As we pointed out last year, Subaru posted impressive sales figures thanks to its crossover lineup, which includes the Forester, Outback, and XV Crosstrek. It turns out, though, that Subaru owners aren't interested in the hybrid variant of the crossover, as Subaru plans to axe the XV Crosstrek Hybrid, reports Cars Direct. The discontinuation of the XV Crosstrek Hybrid is due to the crossover's poor sales figures, claims Cars Direct. Subaru introduced its first-ever production hybrid, the XV Crosstrek Hybrid, in 2013 and after just three years the vehicle is being killed. As we pointed out in our review of the vehicle, the hybrid's larger price tag and marginally better fuel economy made it a tough choice over the non-hybrid models. The XV Crosstrek Hybrid starts – sorry, started – at $27,245, while the base 2.0i model has - had - a price tag of $22,445. That's $4,800 more for a vehicle that gets seven mpg better in the city and only three mpg more on the highway at 30 mpg city and 34 mpg highway. We reached out to Subaru for a comment, but haven't heard back yet. We'll update the story when we hear back from the automaker. Related Video: Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: Cars DirectImage Credit: Copyright 2016 Jonathon Ramsey Green Plants/Manufacturing Subaru Crossover Hatchback subaru xv crosstrek subaru hybrid discontinued subaru xv crosstrek hybrid

Subaru forecasts 540k US sales in 2015, 940k worldwide

In the past few years, growth for Subaru in the US has only been rocketing upward. The company went from selling 336,441 cars in 2012 to 513,693 in 2014, easily beating its own forecast. In fact with a 21 percent gain, the region was the automaker's largest expanding major market worldwide. The brand sees no reason for the strong inertia to stop in 2015 and thinks it can do even better. It actually looks like North America is going to play an even more important role in Subaru's future. According to the company's 2015 forecast, Japanese sales are expected to fall eight percent this year to an estimated 156,000 units. Meanwhile, growth in the US is estimated to climb to the tune of about five percent to a total of 540,000 vehicles. Canada should help things with a seven percent boost to 45,000 cars. The numbers mean that of the automaker's record 940,000 forecasted sales in 2015, roughly 62 percent could come from North America. To cope with the growing demand, Subaru intends to boost worldwide production and build 920,000 vehicles in 2015, an all-time record of it happens. Further out, the company's SIA factory in Indiana is getting an 18,000-unit expansion "during the first half period of FYE2017" to keep up with Legacy and Outback orders. Clearly, Subaru intends to gain even more ground in the coming years. Read below for its full forecasts. FHI Announces Production and Retail Sales Plans for CY2015 Automobiles Jan 16,2015 Tokyo, January 16, 2015 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced its annual production and retail sales plans for calendar year 2015. 1.Production (Units in Thousands) 2014 Result '14 vs '13 2015 Plan '15 vs '14 Japan Production 696 +9% 700 +1% Overseas Production *1 193 +14% 220 +14% Global Production 889 +10% 920 +4% < Japan Production > In prospect of strong sales of the new Legacy and Outback being launched worldwide, Japan production is projected to be 700,000 units, which will be an all-time record for the 3rd consecutive year. < Overseas Production > With expected high demand for the new Legacy and Outback, overseas production is projected to be 220,000 units, which will be an all-time record for the 2nd consecutive year. < Global Production > Global production is projected to be 920,000 units which will be an all-time record for the 4th consecutive year. 2.

Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.