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Subaru parent company celebrates 60th birthday

Fuji Heavy Industries, parent company of Subaru, celebrated its 60th anniversary on June 15. And while the company is largely known in the automotive world for its innovative all-wheel-drive cars, its history stretches far back before the days of symmetrical all-wheel drive, World Rally Blue and gold wheels.
FHI was founded, much like Germany's BMW, as an aircraft company. It went through a series of names before settling on its current title in 1953. And while its aerial successes were never quite as famous as Mitsubishi and its Zero, FHI did fly Japan's first jet-powered trainer. The same year, 1958 to be exact, it unveiled the iconic Subaru 360 minicar. While the 360 never quite caught on in the US (at least not with the fervor of the similarly laid-out Volkswagen Beetle), the small, affordable and simple Subie had a wide-ranging appeal across the island of Japan.
The rear-drive, rear-engined 360 was eventually joined by the 1000, Subaru's first front-engine, front-wheel-drive car. More importantly, the 1000 ushered in Subaru's use of a horizontally opposed engine. The Subaru Leone, which arrived in 1971, expanded on the 1000, by offering a combination we're all familiar with nowadays - all-wheel drive with a flat-four engine.

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."

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.