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California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute

A mighty Outback breaks ground at Subaru's new USA HQ

Subaru is getting down to business at its new American headquarters. Announced just a year ago, the Japanese automaker just broke ground for construction of the new facility. And though it's moving from its existing location, the company is staying in New Jersey just as it has for nearly half a century now. The new facility is being built in Camden, opposite Campell's headquarters in a development spearheaded by the soup company. As part of the project, Subaru will relocate its current offices from Cherry Hill and Pennsauken to the new Camden headquarters, which will accommodate over 600 employees in one building with 250,000 square feet and another with 83,000 – more than double the size of its current headquarters. The distribution and training center, however, will stay put in Florence, NJ. The $118 million project is earmarked for completion by the end of 2017. The groundbreaking ceremony took place yesterday in front of an array of historic Subaru models. The earth itself was moved by a specially prepared yellow Outback wagon with a plow attached to the front. Subaru's decision to remain in Jersey comes in stark contrast to Mercedes' move out of the state and down south to Georgia. Other automakers with their North American headquarters in New Jersey include Volvo in Rockleigh, Mitsubishi (ironically) in Swedesboro, BMW in Woodcliff Lake, and Jaguar Land Rover in Mahwah. SUBARU OF AMERICA BREAKS GROUND ON NEW HEADQUARTERS IN CAMDEN, NJ Cherry Hill, N.J. - Subaru of America, Inc. today broke ground on its future home in Camden, NJ. The company plans to develop an all-new $118 million corporate headquarters in the city, and in doing so, maintain its corporate headquarters in New Jersey as it has for approaching 50 years. The automaker's new headquarters will be located adjacent to Campbell Soup Company's world headquarters. The Subaru of America campus will be the first new corporate headquarters in Knights Crossing, a master plan urban town center community, being developed by Brandywine Realty Trust. The ground-breaking ceremony featured a display of historic Subaru vehicles from the company's 50 years in the Delaware Valley, as well as a unique earth moving/groundbreaking ceremony conducted by a specially-produced Subaru Outback with an attached plow. Thomas J.