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Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

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.

2015 Subaru WRX looks to set a new benchmark in LA

Subaru has just taken the wraps off of the new, 2015 WRX at the 2013 Los Angeles Auto Show. The totally redesigned sedan - the five-door option won't be offered - is more powerful, more fuel efficient (with the right transmission), better looking and more intelligently designed than the car it's replacing.
A new 2.0-liter, direct-injected, turbocharged flat-four sits thumping away under the hood, its top-mount intercooler getting force-fed air by a rather prominent hood scoop. Power output sits at 268 ponies and 258 pound-feet of torque, accessible between 2,000 and 5,000 rpm. While the new car only has a three-horsepower advantage on the current Impreza WRX, it delivers 14 more pound-feet of torque and delivers peak output across a much wider swath of the rev range (the old car netted 244 lb-ft at 4,400 rpm). All this extra grunt comes at a negligible weight penalty - a 2015 WRX with the six-speed manual is just 59 pounds heavier than a 2014 model.
As we said, a six-speed manual is will be available, and as a bonus, it packs one additional cog over the current, 2014 WRX's five-speed DIY transmission. So equipped, the WRX will scamper to 60 in just 5.4 seconds. As for the previously-confirmed continuously variable transmission, it will come with both six- and eight-speed manual shift modes, but will take half a second longer to get to the magical 60-mile-per-hour mark.