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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

2016 Subaru BRZ gets new touchscreen, lower price

Subaru is freshening up its lovable BRZ coupe for 2016, adding a spate of new options and tweaking the price ever so slightly. On the options front, the rear-driver gets a new 6.2-inch touchscreen multimedia system. Like the current car's standard 6.1-inch affair, it offers AM/FM/HD radio, satellite radio, and Bluetooth connectivity. The new system will also play nice with your smartphone, adding integration for Aha, Pandora, iHeartRadio, Stitcher, and a few other more mundane, everyday apps, adding weather and news features. A rear-view camera will also come standard. While the new infotainment system is added across the range, it's the only real change happening for 2016. The Limited trim remains identical to the 2015, offering owners an Alcantara trimmed cabin, with suede and leather seat accents and keyless access, while the car's exterior gets a body-color spoiler and fog lights. Dual-zone climate control, heated seats, and heated mirrors also come standard on the up-market trim. Despite the new 6.2-inch display, Subaru has actually cut prices by $300 on both versions of its two-door model for 2016. The base model kicks off at $26,190, while the Limited rings up at $28,190. Fans of the BRZ's six-speed automatic Philistines can get a two-pedal BRZ for $29,290, which includes the Limited trim equipment. Read on for the official press release, direct from Subaru. Related Video: SUBARU ANNOUNCES PRICING ON 2016 BRZ® MODELS SUBARU STARLINK™6.2"Multimedia System standard across all lines Priced $300 lower than previous model year Rear Vision Camera now standard Cherry Hill, N.J. - Subaru of America, Inc. today announced pricing for the 2016 BRZ line. Starting at $25,395, the BRZ, powered by a 200-horsepower 2.0-liter BOXER engine, marks a return to the fundamentals of sports car design, emphasizing low vehicle weight, an ultra-low center of gravity and precision steering. Available in Premium or Limited trim, BRZ models boast performance features, such as the sport-tuned suspension with front strut brace and TORSEN limited-slip differential. For 2016, the BRZ receives the SUBARU STARLINK 6.2" Multimedia System with a 6.2-in. single-touch gesture display, AM/FM stereo with HD Radio®, SiriusXM Satellite Radio, Radio Data Broadcast System, single-disc CD player, Bluetooth® hands-free phone connectivity and audio streaming, iPod® control, iTunes® Tagging, a USB port and an auxiliary input jack.

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