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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

Subaru mulling three-row utility, upscale versions of existing models

Subaru was one of few automakers whose sales actually picked up during the recent recession. But now that auto sales are back on track (and expected to hit pre-recession numbers this year), Subaru is trying to come up with new products to fill voids in its current lineup. Wards Auto had a chance to talk to Subaru's director-product manager Ken Lin, who indicated that the automaker is planning to introduce new models this year that will help it attract new buyers without alienating current ones.
The biggest void, of course, is a competitive three-row crossover, a role the Tribeca does not fill in one a very popular segment. Lin said that while there's no current plan to kill off the Tribeca, Subaru is looking at creating a larger three-row CUV with more interior space. In addition to to something big, Subaru is getting ready to bring its customers more luxury with new touring models, but does not anticipate going toe-to-toe with Mercedes-Benz or BMW.
By the end of this year, Subaru will be introducing a new hybrid model, although we don't yet know on which model it will be based. What we do seem to know is that the car will get its power from a nickel metal hydride battery rather than a more modern lithium-ion pack for the sake of simplicity. Finally, Lin mentioned a new product being brought into the sports car segment, but while the article takes this as a hint toward a possible BRZ Turbo, it could also be a reference to the next generation of the WRX and WRX STI.

How Subaru saved itself by marketing to the gay community

Almost everyone who's in the car community, and even people that aren't, have probably heard the stereotype that lesbians drive Subarus. What you may not realize is that stereotype was fostered by Subaru, and it helped make the company relevant again in the '90s. This is the story told by NPR's Planet Money podcast. Apparently, as the company was trying to figure out who was buying its cars, the marketing folks discovered that gay and lesbian people were a large segment – along with all those outdoorsy types. The discovery led to subtle advertising directed specifically at what we now refer to as the LGBT community, which in turn led to more sales to gay and lesbian consumers. There were other components to Subaru's sales strategy in the '90s, but this particular campaign was an important part and quite successful. Thanks to that success, today we still have Subaru around building reliable, all-wheel-drive transportation, as well as rally-inspired sport compacts. There are of course many more details, but we don't want to spoil them for you. For the whole story, you need to head over to the Planet Money site and listen in. Related Video: News Source: NPR / Planet MoneyImage Credit: Copyright 2016 Drew Phillips / AOL Marketing/Advertising Read This Subaru lgbt