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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 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

2018 Subaru Crosstrek First Drive | Tall in stature, short on power

When the first-generation Subaru XV Crosstrek launched a few years ago, I was skeptical that more ground clearance and fender flares is all it would take to get more buyers. But sell it has. According to Subaru representatives, it's the company's third-best-selling line, and is second in the country for compact and subcompact crossover sales (first is the Jeep Renegade). Most Crosstrek sales are in America - 60 percent of them. So if lifting an Impreza can yield such impressive sales results, it's no surprise that Subaru kept the formula the same for the new Crosstrek. The end product is served well by all the improvements to the new-generation Impreza, while equally hampered by its issues. One of the few ways the Crosstrek is distinct from the Impreza is on the outside. Though the main body is the same, the front and rear bumpers are a little chunkier, and the front grille is different. It also features the tried-and-true addition of black plastic fender flares to signal its crossover and dirt road intentions. Every Crosstrek comes standard with roof rails and alloy wheels with a machined finish and black-painted accents. Those wheels are available in either 17- or 18-inch varieties. The body sits atop a raised suspension that brings ground clearance up to an impressive 8.7 inches over the Impreza's 5.1 inches. That also matches the Jeep Renegade Trailhawk for clearance. The Crosstrek's fresh bod is propelled by the same 2.0-liter flat-four as the Impreza, which, at 152 horsepower, makes four more ponies than the old engine. Torque remains the same at 145 pound-feet. The engine, which Subaru says is 80 percent new, is much less coarse and clattery than its predecessor, letting more of the pleasant boxer engine's rumbling noises through. You'll likely hear those noises plenty, because you'll need to work the car hard to get anywhere. Just as we found in the Impreza, what power the engine makes is all high in the rev band. And even when you're in the meat of it, it still takes an agonizingly long time to get up to speed. There were a number of overtaking episodes on two-lane roads during the test drive, and each was a nerve-wracking experience. Even with the foot to the floor, the Crosstrek took the tortoise's approach to forward momentum, and I was constantly fearful of a hare coming up the other lane. Brutally slow acceleration isn't particularly out of the ordinary in the subcompact and compact crossover class.