2009 Subaru Special Edition on 2040-cars

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2015 Subaru Legacy is fresh-faced and more frugal

While Subaru posted its best sales year ever in the United States in 2013, over half of its sales came from the success of the new Forester and popularity of the Outback. Its midsize Legacy sedan, on the other hand, saw sales tumble 10.3 percent. The company known for its all-wheel drive models hopes to right that trajectory with the 2015 Legacy. The all-new sedan sees a slight bump in fuel economy and a commitment to giving buyers a better product to compete against segment stalwarts like the Honda Accord and Toyota Camry.
The refreshed sedan wears Subaru's new design language, which was teased by the Legacy Concept at the 2013 Los Angeles Auto Show. However, the production version takes the hard, crisp lines down several notches, and it is bordering on boring at first glance. The best detail of the new design is the new hexagonal shield grille at the front that lends a little upscale panache over the current car's simple, rectangular front end. The coupe-like roofline has also been toned down from the concept, but it does smooth out the rear better than the current gen.
The Legacy's engines are carried over almost identically from last year's car. However both flavors of manual transmission are finally bowing out; all models now come with Subaru's Lineartronic CVT. Output from the 2.5-liter boxer four-cylinder sees a slight bump to 175 horsepower (2 hp more than last year's model) and 174 pound-feet of torque. The 3.6-liter boxer six-cylinder is unchanged at 256 hp and 247 lb-ft. Fuel economy benefits from the new platform with the 2.5-liter model rated at an estimated 26/36/30 miles per gallon city/highway/combined, a boost of 2/4/3 mpg, respectively, over the previous generation. The 3.6-liter also sees a modest rise to 20/28/23 mpg, 2/3/3 mpg better respectively. Fairly impressive figures for an all-wheel-drive, midsize sedan.

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."

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