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Subaru STI Performance Concept previews a bright BRZ future [w/video]

Subaru unveiled its STI Performance Concept car today at the New York Auto Show, a BRZ-based corner carver that says as much about the future of STI in America as it does about the future of the BRZ. And while this marks the world's first official look at the STI concept, Subaru gave me a preview of the car, and a long description of its significance, on a trip to Japan last month. The Performance Concept sends a tangible message about the motorsports heritage and engineering capability of Subaru Tecnica International. STI started life as the motorsports arm of Subaru parent Fuji Heavy Industries. Appropriately, the concept car uses a racing powerplant. Under the hood is the same turbocharged, 2.0-liter boxer-four that powers the BRZ GT300 from Japan's Super GT series, estimated at around 300 horsepower and 330 pound-feet of torque. But the STI concept is more like the ultimate road version of the BRZ instead of a recapitulation of an existing racecar. Chassis, suspension and braking components can all be found on the Japanese Domestic Market's road-going BRZ tS, for instance. Subaru invited me to drive the tS on that same trip, so stay tuned for a report on that experience later this week. It will pain Subaru fans to hear that this concept is not a defacto preview of a forthcoming turbocharged BRZ STI, at least not in the immediate future. STI has been charged with expanding its presence and reach in the North American market, but the process is going to roll out slowly without jumping straight to a fully realized production vehicle. Stage one of the STI expansion will be a consolidation of parts and aftermarket support in the US. Subaru has offered a pastiche of performance products through its dealerships up to today, including the US-only Subaru Performance Tuning (SPT) parts. In the near term, the company will phase out SPT in favor of STI parts and accessories, meaning you'll be able to purchase a lot of the stuff that the Japanese market has today. And we're talking about parts that actually impact performance, not just STI-badged shift-lever knobs or gas caps. The STI Performance Concept does show that Subaru sees a future for its rear-drive coupe in the American market, and that it wants to cater to enthusiasts. Stage two, which will happen in roughly the next year and a half, is to bring an STI-tuned version of the BRZ to the US, not unlike the JDM BRZ tS.

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

Will more efficient tech mean higher prices for Subaru?

If the latest ruling by the California Air Resources Board holds, then Subaru at least must build a plug-in hybrid in the coming years to comply with the Golden State's regulations. Fuel economy looks to improve across the board for the brand, though, thanks to $780 million going into the development of cleaner powertrains for this fiscal year alone. However, buyers might have to pay more for a Subie in the future after this boost in green spending. "Related costs are going up more than expected, bringing the profit margin downward," Fuji Heavy Industries President Yasuyuki Yoshinaga said to the Nihon Keizai newspaper in Japan, according to Automotive News. "We are a small company. We do not benefit as much from economy of scale as bigger companies, so we will have to make up for the increased costs by raising our brand value." At the moment, Subaru's electrified lineup in the US comprises just the XV Crosstrek Hybrid, but the company is reportedly planning to add more. Plus, Subie also wants to make its internal combustion engines more efficient. According to Automotive News, all of the brand's mills are getting direct injection by 2016, and cylinder deactivation and lean combustion cycles are on track for 2020. Earlier rumors also suggested that the automaker might bring the turbocharged four-cylinder boxer to more products, as well. While these more efficient models might cost more, Subaru must carefully maintain the balancing act of introducing the technology and keeping sales growing. As of May 2015, the brand had 42 straight months of year-over-year growth in the US and had record sales in the country last year. The company has already decided to significantly boost production capacity at its Indiana factory in hopes of keeping the good times rolling.