2015 Subaru Outback 2.5i Clean Carfax/title,low Miles,2 Owner/srvc Opt on 2040-cars

Auto blog

Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.

Successor to the Toyota 86 is on the way

Until now, Toyota and Subaru have been mum on the prospect of a follow up to the Toyota 86 and Subaru BRZ. Although both cars received mild refreshes and even milder power bumps, they're both essentially the same cars that hit the market nearly five years ago. It appears a successor is indeed on the way, as Autocar confirms that Toyota is developing a next-gen 86. Karl Schlicht, executive vice-president at Toyota Motor Europe, said that the 86 will live on past the current generation. "The car serves a big purpose," Schlicht said. "We are not getting out of that business. Sporty cars go through their phases. It's our intention to continue with that car." Toyota seems to be back in the sports car business, as the company has partnered with BMW on a new Supra. Like the current Toyota 86, it seems likely that the successor will be co-developed with Subaru. Schlicht says that to get the low center of gravity and the handling characteristics that come along with it, a horizontally opposed engine is a necessity. He admits that there is no firm confirmation of a commitment from Subaru. While no Schlicht gave no details about the new car, he did nix any possibility of a convertible variant. "We wouldn't do it on the current model," he said. "That doesn't mean dealers wouldn't like one, but there are so many other priorities that I don't think we've got spare capacity for that." Related Video:

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute