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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

Subaru pairs with Liberty Mutual for built-in driving monitor app

A new app for Subaru's Starlink infotainment will give owners easy access to Liberty Mutual's RightTrack usage-based insurance program later in the year, and those that take part will be able to save up to 30 percent off their bill. Users will also get nearly realtime feedback about their driving that could make them safer behind the wheel. "RightTrack is designed to benefit drivers," Jeff Wright, vice president of usage-based insurance at Liberty Mutual, said to Autoblog. The program monitors a participating driver's behavior and looks for factors like hard acceleration or deceleration, the number of miles driven, and a journey's time of day. Users then receive a report after a trip on their smartphone or the infotainment screen about these events behind the wheel. Everyone gets a five-percent discount just for signing up for the usage-based insurance, but after 90 days the safest drivers can get the maximum discount. Liberty Mutual also doesn't increase RightTrack client's insurance rates. "This partnership combines Liberty Mutual's extensive experience and reach in usage-based insurance with Subaru and Clarion's cutting-edge connected car technology to bring RightTrack savings to consumers in new ways," Hamid Mirza, auto product manager at Liberty Mutual Insurance, said in the announcement. A 2015 study indicated that 27 percent of older drivers had privacy concerns about usage-based insurance programs, but younger people had a growing willingness to try them. The industry says that showing clients how they drive can make them safer because folks realize what they're doing wrong. Plus, many people are attracted to the potential monthly savings. The RightTrack app should be available in late spring on any Subaru with the Starlink infotainment system, company spokesman Anthony Landamia told Autoblog. Liberty Mutual plans eventually to update the software to support other helpful features like severe weather alerts, accident scene assistance, and roadside assistance. Liberty Mutual Insurance and Subaru Introduce New Technology to Promote Safe Driving and Savings on Auto Insurance RightTrack® in-vehicle app powered by Clarion Smart Access™ features new innovation in usage-based insurance for SUBARU STARLINK™ Cloud app suite BOSTON – January 4, 2016 – From commuting to work to shuttling the kids, how safe of a driver are you?