Nicely Built Jump In And Drive Cruiser. **video** on 2040-cars

Auto blog

Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Lexus takes aim at electric vehicles, again

Lexus is once again taking aim at plug-in vehicles by emphasizing the perceived challenges of recharging batteries, rather than simply filling up with gas or hydrogen. Only this time, Toyota's luxury division appears to be zigging while everyone else is zagging. Of course, the nameplate can use all the help it can get when it comes to hybrid sales. First highlighted by Green Car Reports, Lexus has added a banner to the website of its hybrid vehicles that says "Always Charged. Always Ready." That's a not-so-veiled shot at plug-in vehicles, a sector where Toyota has minimal exposure. Lexus also notes of its hybrid vehicles that there's "nothing to plug in." Of course, there may be sour grapes at play. Through September, sales of its five hybrid models in the US dropped 17 percent from a year earlier to about 21,500 units, and September was particularly tough as hybrid sales plunged 34 percent to almost 1,800 units. Even so, the third quarter likely represented a record when it came to plug-in vehicle sales. We say "likely" because Tesla doesn't break out its US sales, and not all automakers disclose sales of their plug-ins. We calculate that sales for the quarter were at about 36,000 vehicles, up 38 percent from a year earlier. For now, Lexus doesn't sell a fuel-cell model, though it may sell a fuel-cell version of the Lexus LS full-size sedan. Toyota, of course, offers the Mirai, which has moved about 710 units this year. Lexus has gone down this proverbial road before. In 2014, the brand unveiled a similar campaign that highlighted how long it took to recharge EVs, and was ultimately taken to task by electric-vehicle advocates Plug-In America. Lexus apologized for offending anyone and said it'd review content related to hybrid advertising. Doesn't seem like an apology is in order this time out, but that doesn't mean that it's a good strategy. Related Video: Featured Gallery 2018 Lexus LC 500h View 40 Photos News Source: Green Car Reports Green Marketing/Advertising Recalls Lexus Toyota Hybrid