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Subaru says Japan car output halted due to defective part

TOKYO — Subaru Corp said its sole car factory in Japan accounting for roughly 60 percent of global production had halted output a week ago after it discovered a defect in a component procured from a supplier. The Asahi newspaper first reported the suspension at the Gunma plant on Wednesday, saying the defect was found in the power steering component. A spokesman for Subaru says the problem affecting Crosstreks and Foresters was discovered early. None of the affected vehicles had reached consumers, and won't until they've been repaired. Perhaps 10,000 cars, maybe fewer, were intended for the U.S. market. Subaru, which exports the majority of its domestically made cars, could not say when production would resume. Production at Subaru's plant in Indiana was unaffected.Related Video: Plants/Manufacturing Subaru

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.

2016 Subaru WRX makes IIHS TSP+ fun

We write about boring, utilitarian compacts being named to the Insurance Institute for Highway Safety's Top Safety Pick+ list pretty regularly. Today, we've got yet another fun car to add to the tally – the Subaru WRX. Thanks to the inclusion of the company's impressive EyeSight active safety system, the WRX was able to score a "Superior" rating on IIHS' frontal crash prevention test, which is the highest score possible. Vehicles are required to score at least an "Advanced" rating to earn the TSP+ mark. In addition to the active safety system, TSP+ vehicles must also record "Good" ratings across the four basic crash tests – front, side, rear, and rollover – and a "Good" or "Acceptable" rating the small-overlap crash test. Of course, Subaru is no stranger to IIHS' biggest honor – the Legacy and Outback were named Top Safety Pick + vehicles in April 2014. We're still scouring the Internet for the actual crash test video from IIHS. Once we uncover it, we'll update this post. Until then, scroll down for the official press release from Subaru. 2016 Subaru WRX Awarded IIHS' Highest Standard of Safety "2015 TOP SAFETY PICK (TSP) +" ? "EyeSight" achieved the highest possible rating of "Superior" for front crash prevention. ? Seven models have earned 2015 safety awards from IIHS. Tokyo, September 14, 2015 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced that the Insurance Institute for Highway Safety (IIHS; a nonprofit organization supported by auto insurers in the US) has awarded the highest standard of safety, 2015 TOP SAFETY PICK+ (TSP+) along with the highest possible rating of "Superior" for front crash prevention to the 2016 Subaru WRX (US specs.), equipped with Subaru's EyeSight* driver assist technology. By adopting the EyeSight for 2016 model, WRX earned 6 of 6 points for front crash prevention. Including 2016 Subaru WRX, Subaru has seven models that have earned 2015 safety awards from IIHS - six with TOP SAFETY PICK+ and one with TOP SAFETY PICK. The EyeSight was the first system ever to use only stereo camera technology to detect the objects such as vehicles, pedestrians and cyclists. Since its Japanese debut in May 2008, features available on this system have been highly praised; they included pre-collision braking control and all-speed range adaptive cruise control tracking function.