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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 mulls motorsports return, nixes small CUV plans

The Subaru WRX STI breaking the automotive lap record at the Isle of Man might be just the beginning of the headlines trumpeting a Subaru racecar. According to the latest rumors, the Japanese brand is looking at taking motorsports more seriously in the future. That could possibly even mean endurance racing at Le Mans.
According to Auto Express, the brand is mulling a greater participation in motorsport, but the big question is where. The World Rally Championship isn't a certainty because it now favors smaller cars like the Volkswagen Polo. Subaru still competes in series like Rally America and Global Rallycross, but there are bigger stages to play on.
What's interesting, is that this commitment to motorsports comes right as the automaker is denying plans to build a small CUV for its passenger car lineup. According to Auto Express, the company has no intention of developing a crossover smaller than the current XV Crosstrek. Even if the sales are there, it would just cost too much to develop. In the US, at least, the XV is doing great with sales up 42 percent in July.

Subaru bringing new XV concept to Geneva

The high-riding, Impreza-based Subaru Crosstrek is due for an update. So to whet our appetites, Subaru's showing a concept that previews the new XV. The concept will debut in Geneva, and it's being teased today in the image above. The Japanese automaker isn't saying much about what will go into the new XV Concept, and the teaser doesn't give us much to go on aside from an impression of body-cladded ruggedness. But it isn't hard to see what direction Subaru is going in here. It already revealed the Impreza 5-Door Concept at the Tokyo Motor Show last year, and the Impreza Sedan Concept in LA shortly thereafter, each previewing different bodystyles for Fuji Heavy's compact model. Like the Outback Sport before it, the Crosstrek is essentially a beefed-up version of the current Impreza. So we'd expect the new XV concept to follow a similar path, building upon the show cars we saw recently in Japan and California and taking them down a more rugged path for the European show. We'll look forward to seeing how it shapes up, but more than that, to seeing how Subaru implements the designs for production. Related Video: Subaru to Debut "Subaru XV Concept" at 2016 Geneva International Motor Show Tokyo, February 9, 2016 – Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced that the "Subaru XV Concept" will make its world debut at the 86th Geneva International Motor Show to be held in Switzerland (Press day: March 1 – 2 / Open to the public: March 3 – 13, 2016). The Subaru XV Concept will be unveiled at the press briefing scheduled for 11:15 AM (Central European Time) on March 1 at Subaru booth. The special site will opens today on the Subaru Global Site. http://www.subaru-global.com/2016geneva.html The site will feature information updates relating to the Geneva International Motor Show including Subaru's press conference.