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Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru

World Car Of The Year down to its final four

Judges for the World Car of the Year Award have narrowed down the finalists to just four vehicles. Out of a total of 42 entries, only the Mercedes-Benz A-Class, Porsche Boxster/Cayman, Scion FR-S/Subaru BRZ/Toyota GT-86 and Volkswagen Golf remain standing. For Volkswagen, this marks the second consecutive year the company has had an entry among the finalists, and the fourth time since 2009. In order to qualify, a vehicle must be on sale on two continents during the span of time between January 1, 2013 and May 30, 2013. A panel of 66 journalists from 23 countries then vote on the finalists.
Three vehicles have made the cut for the last round of voting on the 2013 World Performance Car as well, with the Cayman/Boxster and FR-S/BRZ/GT-86 running against the Ferrari F12 Berlinetta. Meanwhile, the Renault Zoe, Tesla Model S and Volvo V60 Plug-In Hybrid are duking it out for the World Green Car Award. Finally, the World Car Design of the Year Award is up for grabs between the Aston Martin Vanquish, Jaguar F-Type, and the Mazda6. Check out the full press release below. Overall winners will be presented at the 2013 New York Auto Show.

Subaru recalls 3k Legacy and Outback models for fluid leak

Subaru is recalling 2,893 examples of the 2015-2016 Legacy and Outback because of a potential transmission fluid leak on the two models. The affected vehicles carry build dates between July 3 and July 25, 2015 for the Legacy, and until July 27 on the Outback. According to a Subaru document posted by the National Highway Traffic Safety Administration (as a PDF), during production, the seal cap in the propeller shaft yoke may have been deformed. This could cause a transmission fluid leak, and "there is a possible risk of fire" if the liquid drips onto the exhaust, the report says. Dealers will replace the entire prop shaft on these models, and repairs will start on August 28. New examples will carry a stop-sale until fixed. Related Video: RECALL Subject : Transmission Oil Leak Report Receipt Date: AUG 10, 2015 NHTSA Campaign Number: 15V502000 Component(s): POWER TRAIN Potential Number of Units Affected: 2,893 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU LEGACY 2015-2016 SUBARU OUTBACK 2015-2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain 2015 and 2016 model year Subaru Legacy 4-Door and Outback vehicles manufactured July 3, 2015, to July 27, 2015. Transmission oil may leak from a deformed seal cap on the propeller shaft yoke. CONSEQUENCE: If the transmission oil leaks onto the exhaust pipe, there is a possible risk of fire. REMEDY: Subaru will notify owners, and dealers will replace the propeller shaft, free of charge. The recall is expected to begin on August 28, 2015. Owners may contact 1-800-782-2783. Subaru's number for this recall is WQU-56. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.