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Subaru nixes plans for US-built XV Crosstrek

Subaru is on a sales tear, with numbers up 21 percent through the end of November compared to last year. It's been investing in its Indiana factory, and having ended its contract to build the Toyota Camry there, the 400,000-unit capacity was once seen as more than Subaru needs. At some point Subaru had plans to build the XV Crosstrek here in the US, but Reuters reports that the company has changed its mind and will build the little crossover Scooby in Japan, in the same Gunma Prefecture factory where the Impreza, BRZ and Levorg are built. The report cites "the relatively high sales price," the weakening yen versus the dollar and capacity constraints at the Indiana facility. For a planned production run of 65,000 Crosstrek units annually, the new math – especially the yen valuation, which has declined against the dollar to a rate not seen since 2007 – makes Japanese production a viable option. Subaru isn't the only manufacturer taking its toys back home, either: the Reuters report says Toyota is considering shifting some Camry production back to Nippon, while Nissan plans to do the same with the Rogue. Our guess is that if Subaru sales continue the trend they've been on for years, the assembly decision will give them more local flexibility here for addressing it. Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: ReutersImage Credit: Copyright 2014 AOL Plants/Manufacturing Subaru Crossover subaru xv crosstrek

Subaru weighing Outback vs Forester approach for seven-seater

Subaru is gearing up for a return to the seven-seat crossover segment, and it's focusing the new model on the US market, but just which approach it will take has yet to be decided. One possibility, according to Automotive News, would be to position it as a larger counterpart to the Outback wagon, with rugged off-road styling. The other would be to sell it as a big brother to the Forester, with cleaner styling. One thing Subaru most definitely does not want to repeat is the Tribeca fiasco, so we wouldn't expect the new model to carry that same nameplate. Introduced in 2006, the Tribeca's divisive front-end styling kept it from being a serious player, and it underwent a facelift only two years later. It was withdrawn from the market altogether after 2014. The company had targeted moving 36,000 units of the Tribeca each year, but sold fewer than 2,800 in America in 2011, barely over 2,000 in 2012, less than 1,600 in 2013 and just a few hundred in 2014. The new seven-seat crossover will go after the likes of the Toyota Highlander, Nissan Pathfinder and new Honda Pilot among three-row Japanese crossovers. Like those rivals, it will be built in the US for the US market – namely at Subaru's assembly plant in Indiana, the same state where the Highlander is produced. The new crossover's arrival will, according to reports, mean that the Levorg wagon offered in Japan and Europe won't be offered Stateside. Related Video:

NHTSA investigating 33k Subaru Imprezas for airbag sensor flaw

The National Highway Traffic Safety Administration is beginning an investigation into an estimated 33,500 units of the 2012 Subaru Impreza because of a potential flaw with the sensor for the airbag system. The government agency has 26 complaints about possible faults with the Occupant Detection System for the front passenger seat, and this is the sensor that decides whether a person is an adult, petite, child seat or some other object and adjusts the deployment of the airbag accordingly. However, these reports allege that it was incorrectly turned off when someone was in the vehicle, which caused the airbag not to activate. Subaru put out a Technical Service Bulletin in May 2012 that attempted to address a similar problem. For now, this investigation is classified as a preliminary evaluation and is gathering more data about the potential problem to "assess the scope, frequency, and consequence," according to NHTSA. Related Video: INVESTIGATION Subject : Passenger Front Air Bag Suppression Date Investigation Opened: APR 10, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15012 Component(s): AIR BAGS All Products Associated with this Investigation Vehicle Make Model Model Year(s) SUBARU IMPREZA 2012 Details Manufacturer: Subaru of America, Inc. SUMMARY: The Office of Defects Investigation has received 26 Vehicle Owner Questionnaire reports involving the passenger frontal air bag in MY 2012 Subaru Impreza vehicles. These vehicles use a capacitive type Occupant Detection System, which is intended to classify the occupant of the passenger seat as either full sized, small stature, a child seat or other object. The reports allege that the Occupant Detection System, failed to operate properly and incorrectly suppressed (turned off) the front passenger air bag when the seat was occupied. In a frontal crash sufficient to warranty deployment, a suppressed air bag may increase the risk of injury to the occupant of the seat. Additionally, ODI notes that Subaru published a Technical Service Bulletin (TSB) No. 17-16-12 on May 29, 2012 to address conditions with the Occupant Detection System that can lead to suppression of the passenger air bag when the passenger seat is occupied. ODI is opening this this investigation to assess the scope, frequency, and consequence of incorrect air bag suppression and any connection that may exists to the TSB.