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Subaru suppliers rely on gray market labor

The Subaru Forester is currently the Japanese brand's bestselling model in the US. A new investigation by Reuters is making some scathing allegations about how the popular model is actually made, though. The piece claims that many of Subaru's suppliers in Ota, Japan, are using low-paid foreign workers and asylum seekers to produce components that go into the CUV. The report says that these laborers are coming from places like China and Bangladesh, and they allegedly receive a pittance compared to their Japanese counterparts. Many said that they get about $6.60 an hour, but employment brokers can take a large portion of that pay. At just four suppliers Reuters estimates there are 580 foreign workers, or about 30 percent of the total workforce. The situation has turned Ota into a cultural melting pot because of the significant population of immigrant labor. The problem stems in part from Japan's tiny labor market, and the country's odd asylum system that doesn't allow some applicants to work legally. These suppliers produce many components for the Forester, including the seats, shocks, and fuel tanks. Reuters admits that the businesses have contracts with other Japanese automakers, as well, but Subaru receives the main focus of this piece, which you can read in full, here. When asked for comment about Reuters' report, Subaru of America provided Autoblog with the following statement: "Fuji Heavy Industries does not condone the exploitation of any class of worker, either in its own operations or within its supply chain. FHI expects all employees to be treated fairly, with dignity and respect and to be provided with appropriate workplace protections. The FHI CSR policy respects and adheres to the law and regulations of business as well as upholding human rights and international standards of behavior and the ethical standards of our stakeholders. Our supply chain network has been made aware of our policy and expectations."

Subaru planning modular platform, seven-seat SUV, plug-in hybrid

Fiat Chrysler Automobiles isn't the only big name in the auto industry releasing details on its future plans. Subaru, and its parent company Fuji Heavy Industries, is aiming to bump its North American sales up from 478,000 to 600,000 by 2020. Now, that seems pretty reasonable, especially in the face of FCA's hugely ambitious goals for Alfa Romeo and Maserati. It's how Subaru will go about increasing the sales, though, that has us intrigued.
A focus on more fuel-efficient, direct-injection engines will complement a new platform, while the company is contemplating expanding capacity at its Indiana factory, which will now have more room since Toyota Camry production will be ending there.
As for that new platform, it's called the Subaru Global Platform. Original, we know. It's a modular deal and will eventually underpin a vast range of future Subies following its debut in 2016. The new platform may also end up underpinning a seven-seat SUV, which would serve as the successor to the Tribeca and debut between 2016 and 2020, according to Automotive News.

Subaru hits 500,000 sales in the US in 2014, a record for the brand

Having sold 336,441 cars in the US in 2012, Subaru said in early 2013 that it wanted to hit 500,000 annual sales here by 2015. After boosting sales to 424,683 in 2013, it's hit its half-mil target a year early: on December 29, 2014 Subaru sold its 500,000th car, and the sales year didn't end until January 2. The brand has never done that before in a calendar year, and on top of being an eighteen-percent improvement year-on-year, 2014 is Subaru's seventh year of growth. Every model is up for the year except for the BRZ and the Tribeca. The Outback and Legacy are on fire, practically doubling their sales numbers through the end of November compared to 2013. In addition to making better and better cars, Subaru credits nicer dealerships with better workflows, and improved marketing and advertising. If history is any indication, the final number could be appreciably above 500,000 even with just four days of selling left. Subaru only needed 36,230 sales in December to hit 500,000; it sold 45,273 cars in November, and for the past four years it sold more cars in December than November. Admittedly, November was its third best-selling month of the past five years. Leaders at the automaker are confident about this year as well, saying, "[we] expect 2015 to also be another record year." But our favorite line in the press release announcing the feat: "The current generation of Subaru vehicles grew in size compared to the previous generation in order to better suit the needs of the American buyer." Hey Subaru, you calling us fat? SUBARU OF AMERICA REACHES 500,000 SALES MILESTONE IN 2014 - Subaru sales in U.S. top 500,000 for the first time in a calendar year - 500,000th vehicle sold on December 29 - All models contributing to sales increase Cherry Hill, N.J. - Subaru of America, Inc. has reached a significant milestone in its history, by retailing 500,000 vehicles in a single calendar year. The milestone caps a remarkable seven year growth period for the brand in the U.S. in which the company has grown from 187,699 vehicle sales in 2008 to what will total over 500,000 sales in 2014, once the sales year closes on January 2. The growth in Subaru sales can be attributed to a combination of improved vehicle offerings, targeted and award-winning marketing and an improved retailer body.