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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 confirms 3-row crossover for Indiana plant for 2018

There's a new vehicle coming to Subaru's Lafayette, IN, factory, as the all-wheel-drive specialist confirmed the site will build a new three-row crossover. The vehicle, which will actually be larger than the long-departed, three-row Tribeca, will begin construction in 2018. This announcement from Subaru follows a report from Automotive News last week that the company would introduce a US-specific seven-passenger CUV. That same report pointed to the Indiana factory as the source of the new model. It's unclear if this new model will revive the Tribeca name. All the company would say is that it "will likely carry a name synonymous with outdoor adventure, consistent with the company's other successful crossovers." "We are delighted to be bringing even more Subaru manufacturing to the US," Subaru of Indiana Automotive executive vice president Tom Easterday said in a statement. "The new model will also result in increased investment at SIA and at several of our suppliers across the country." Alongside the unnamed new CUV, Subaru's Lafayette, IN, factory already builds the Legacy and Outback. By the time the full-sizer arrives, the factory will also be responsible for the redesigned Impreza. Read on for the official announcement from Subaru. November 9, 2015 SUBARU CONFIRMS NEW 3-ROW CROSSOVER TO BE MADE IN U.S. AT INDIANA PRODUCTION PLANT Subaru of Indiana Automotive will receive 3-row in 2018 as its fourth model Cherry Hill, N.J. - Subaru has confirmed that a new 3-row crossover model, effectively replacing the retired Tribeca, will be produced at its SIA plant in Lafayette, Indiana. The all-new crossover is expected to be built beginning in 2018 and will be a larger vehicle than the Tribeca, with full third-row capability. The new vehicle has not yet been named, but will likely carry a name synonymous with outdoor adventure, consistent with the company's other successful crossovers; Outback, Forester and Crosstrek. When production of the new model begins, Subaru will have four models produced in the U.S.: Legacy, Outback, a new Impreza compact sedan and 5-door model beginning production in late 2016, and this new crossover. Subaru production in Indiana is projected to be approximately 228,000 units in 2015, and annual capacity is scheduled to grow to 394,000 with the introduction of the Impreza model. Subaru is currently enjoying its seventh consecutive year of sales records and expects to close 2015 with over 550,000 sales, with sales tripling since 2007.

New Subaru Outback spied for the first time

The Outback has been a strong seller for Subaru, especially in its most recent generation when it combined station wagon utility with crossover looks. The model is getting an imminent redesign just like its platform-mate the Legacy, and here are the first spy photos of it testing in Europe against an Audi Q5.
The cladding makes it very hard to tell what exactly Subaru is doing with the styling, but it's clear that they are sticking to the combined wagon/CUV look from the current gen. Many parts appear taken almost directly from the new Legacy like the door-mounted mirrors, creased hood and angular headlights. The windshield also appears more steeply raked than today's Outback, and at the rear the taillights look thinner and more vertical.
We are expecting the new Outback to use the revised 2.5-liter four-cylinder and possibly the 3.6-liter boxer six-cylinder from its sedan counterpart at launch. However, a previous rumor indicated the possibility of a smaller six-cylinder and a turbocharged four-cylinder being added to the lineup, but these new engines might still be a few years away.