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Subaru partners with Magellan for smartphone-based navigation

With tech in the air this week at the Consumer Electronics Show, Subaru announced that it named Magellan SmartGPS as its mapping partner in future Subaru vehicles – without putting an exact date on when that "future" will be. The appointment means that Magellan's smartphone-based cloud navigation, which works on both Apple iOS and Android, will port fully voice-guided navigation using constantly updated maps to the head unit in the car. Magellan already sells a standalone SmartGPS unit that you can buy from major retailers, and it can communicate with other wireless devices to find destinations and transfer directions. However, with the rise of smartphones and with major tech players becoming baked-in fixtures inside vehicles, the sales of portable navigation devices have gone into freefall - from 15.1 million units in 2008 to around 4.3 million units in 2019. The deal with Subaru helps Magellan continue to focus on its core strength. The caveat is that your car will need to have the Subaru Starlink system. It is included in some of the brand's vehicles, like the Impreza and the Crosstrek. On others it is a cost option - it's part of a $1,795 package on the Legacy, a $2,295 package on the Outback. The press release below can tell you more. Subaru Names Magellan Its Smartphone-based Cloud Navigation Partner Magellan SmartGPS Navigation to Power Future Subaru Vehicles Equipped with the SUBARU STARLINK Platform Powered by Clarion's Smart Access System Las Vegas, NV – January 4, 2016 – Magellan's SmartGPS navigation has been selected to be included with Subaru vehicles featuring the SUBARU STARLINK platform. The SUBARU STARLINK infotainment systems, available in Subaru vehicles, utilize Clarion's advanced Smart Access™ cloud connectivity platform to seamlessly sync and control cloud-based applications directly through the infotainment system's screen, providing immediate access to Magellan's SmartGPS navigation. Designed to support both Apple iOS and Android smartphones, the SUBARU STARLINK app brings continuously updated cloud applications to the vehicle's center stack display. Drivers can then access all STARLINK approved apps and services effortlessly, including Magellan's SmartGPS, allowing for safe access and display on the vehicle's touch panel. Magellan SmartGPS navigation will be available on future Subaru models.

Kayaba, Sumitomo to pay millions for price-fixing in US

Kayaba Industry Co, which does business in the US as suspension parts maker KYB, and Sumitomo Electric Industries are facing payments in the millions to settle price-fixing cases about the components that they make. As part of the Department of Justice's ongoing crackdown of price fixing in the auto industry, KYB agreed to pay $62 million and pleaded guilty to conspiracy to set the cost of shock absorbers from the mid '90s through 2012. The company allegedly worked with co-conspirators to keep the cost of the parts high, and those components then made it into vehicles from Honda, Kawasaki, Nissan, Subaru, Suzuki, and Toyota. "Any collusive agreement among competitors to restrict price competition undercuts our free enterprise system and violates the law," said Carter M. Stewart, US Attorney of the Southern District of Ohio, in the DoJ's announcement. Over the past few years, the DoJ has brought cases against 37 parts suppliers and 55 executives, leading to over $2.6 billion in fines. The investigations haven't always been so successful – some of the Japanese execs fled from the US to avoid prosecution. Critics allege that price fixing is simply how business is done. According to Automotive News, Sumitomo Electric Industries is also facing a $50 million settlement in a civil lawsuit that's related to price fixing of parts like wiring harnesses and heater control panels. The plaintiffs include owners and dealers that purchased vehicles with these parts. The company asserts that the violations are from before 2010, and it now has different process in place to avoid further violations. KYB Agrees to Plead Guilty and Pay $62 Million Criminal Fine for Fixing Price of Shock Absorbers Kayaba Industry Co. Ltd., dba KYB Corporation (KYB) has agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to U.S. consumers. According to charges filed today, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation and Toyota Motor Company, including their subsidiaries in the United States.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.