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Subaru investing $400 million for Impreza production in Indiana

As a part of a goal to increase its US sales tally up to 500,000 annual units by the end of the decade, Subaru is investing $400 million in its Lafayette, IN assembly plant in order to start building the Impreza in 2016. According to Automotive News, about half of that investment will be for a new paint plant while another big chunk will be used to extend the assembly line to allow for the increased capacity.
Currently, Subaru's Lafayette plant is responsible for building about 200,000 Legacy, Outback and Tribeca models each year (not including around 100,000 Toyota Camry sedans), but Subaru-specific output will be increased to 300,000 units, requiring an additional 900 new hires as well. Although a previous report suggested the Forester and Impreza would be moving Stateside, this AN article only mentions the hatchback and sedan versions of the Impreza being added to Lafayette - and no mention of the closely related XV Crosstrek.

Toyota 86 and Subaru BRZ successor canceled?

Rumors indicate that the Toyota 86 is done for. Japanese Nostalgic Car is quoting Japanese sources as saying Toyota and Subaru have parted ways regarding the 86 and that the current car's replacement is off the table. According to JNC, the Japanese magazine Best Car is readying a report that the 86/BRZ successor has been canceled. JNC also considers the fact that in Japan, there will be a four-cylinder, 197-horsepower version of the new Supra, ready to continue where the 86 will leave the market. Back in 2016 the automaker seemingly confirmed that a replacement for the rear-drive car was under development, but plans can change and with a cheaper Supra version for sale in markets outside the U.S., we have to wonder if the 86 replacement has been shelved. The 86, while balanced, has only received mild enhancements and not a lot of extra power during its near-decade long time on the market, and it isn't such a strong seller that it would necessarily merit the effort of Toyota developing a successor on its own, particularly without the help of a partner like Subaru or BMW. At the same time, Autocar quotes Toyota boss Akio Toyoda on the Supra: "At the end of the day, is there anything better than a tight rear-wheel-drive sports car? I hope this won't be the last Toyota sports car you see from us in the future." While that is far from a solid statement of Toyota's future intent, it paves the way to offerings below the Supra, and shows how much the company boss cares about driver involvement. There is a distinct possibility that the company will re-introduce the MR2 as an electrified, rear-drive sports car – which could still be a joint venture with Subaru, as Japanese Nostalgic Car theorizes. Whatever's in the pipeline – and we hope there is something in the pipeline – it seems Toyota's heart is in the right place: driving the rear wheels. Related Video:

Subaru Levorg: Forbidden fruit

For Subaristas, the Levorg needs no introduction. Fans of the marque have been begging Subaru of America (SOA) to bring it over here from the moment it was first introduced. First introduced in Japan a year or so ago, and now making its way across the globe, it is one delicious wagon that SOA refuses to let Americans taste. Why? Wagons don't sell in America, so they say (some Euro-brands might disagree with that). Plus they seem to think they have the wagon market pretty well covered with the Outback, Forester, and to a lesser degree, the Crosstrek. First a bit of history Unlike here in America, at least in recent years, a Legacy wagon continued to exist in other markets. At some point Subaru decided to also delete it from their global portfolio, and to replace it with the smaller, sportier and well-equipped Levorg. The thinking was that the Levorg would be more distinct from the Outback than a Legacy wagon, and would be less likely to step on the Outback's toes in terms of searching for customers; makes sense. Another point needs to be made: Subaru is selling at record levels. They just can't make them fast enough as they are constrained by lack of production capacity. That will improve soon as the next-gen Impreza will be built in their Indiana plant this fall once the Toyota Camry production moves out. So, at the moment, they don't need the Levorg to improve sales. Down the road that may be a different situation, but for now adding another model line would be tough and of little benefit. Why America needs the Levorg When Subaru introduced the current generation WRX they deleted the hatchback — which accounted for 50 percent of WRX sales. Needless to say WRX 5-door owners were outraged — and continue to be so. The Levorg wagon could be the perfect answer for these folks, as shares many parts with the WRX. In Japan it's available with a new 1.6L direct-injection turbo as well as the same 2.0L direct-injection turbo found in the WRX. Other markets, to date, only get the 1.6L engine. All Levorgs have CVTs, with the 2.0 versions getting the high-torque CVT found in the WRX CVT. The chassis setup, while a tad softer, is very close to that of the WRX. So it is definitely a car that's cut out for canyon-carving. It's also more upscale than the WRX, with an interior more akin to luxurious trim levels of the Legacy and Outback. In its defense Subaru has claimed that the budget did not allow for developing both the Levorg and a 5-door WRX.