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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.

Scion was Toyota's lost generation

Toyota's top North American leader was succinct in explaining the reasons for killing Scion. "It's the right decision at the right time," Jim Lentz said. It's hard to disagree. In a strong market that saw 17.5 million sales last year, Scion volume dipped three percent. Its product lineup has withered for years, which is always a telltale sign a brand doesn't have the full support of its owner. Though enthusiasts love the FR-S sports car, it's the fruit of a joint project with Subaru that also produced the BRZ. Scion's coolest car has a twin sold by one of its rivals. After the FR-S launched in 2012, Scion got nothing – squat – in the way of new products until the iA and iM arrived late last year, IHS senior analyst Stephanie Brinley noted. "[Scion] was not successful in building a visual brand identity or product personality," she said. Lentz, Scion's first vice president and now CEO of Toyota's North American division, admitted the market has changed. "Younger customers have a different mindset," he said. In the early oughts, a brand that catered to a youthful demographic made some sense, and this is one front where Toyota can declare victory. Seventy percent of Scion's buyers were new to Toyota, and the average age was 36 years old. The problem is, not enough of them buy Scions anymore. Scion hit a highwater sales mark of 173,034 vehicles in 2006 and hasn't come close to reaching that since. The recession hurt Scion, too. It bottomed out in 2010 with just 45,678 sales, a time when the rest of the industry was beginning to recover. There was a brief uptick (73,507) in 2012, but Scion failed to capitalize on that momentum and sales fell for three more years. Toyota is calling Scion's pending death a "transition" back to the main company. Sure, most of the cars will be rebadged Toyotas, like the FR-S, iA, and iM. The C-HR, an attractive future crossover that would have given Scion a boost, will go into production as a Toyota. But make no mistake: This is a failure. Toyota is closing a brand in the same way General Motors scrapped Oldsmobile, Ford shuttered Mercury, and Chrysler dropped Plymouth. Those brands languished for years. Toyota moved quicker to put the fork in Scion, which prevented it from becoming a long-term drain on the parent company. Lentz was dead on. It's the right time. News & Analysis News: Sergio Marchionne is against a Ferrari SUV Analysis: His exact words were, "you have to shoot me first," Bloomberg reported.

Toyota expands Takata airbag inflator recall

The Basics: Toyota will recall 198,000 examples of the 2008 Corolla and Matrix and the 2008-2010 Lexus SC430. The Problem: The vehicles contain Takata's dual-stage inflators in their front passenger airbags, which could rupture in a crash. Injuries/Deaths: None reported in this population of vehicles. However, experts believe Takata's inflators have links to at least ten fatalities. The Fix: Dealers will replace the part with a newly manufactured one. If You Own One: Toyota will notify owners about the recall by first-class mail in March and will send a remedy letter in June when the parts are ready. TOYOTA EXPANDS TAKATA AIRBAG SAFETY RECALL TORRANCE, Calif., March 2, 2016 – Toyota Motor Sales, USA, Inc. today announced that it is expanding two of its recalls involving Takata front passenger airbag inflators. This will add model years of certain vehicles previously recalled and will cover all remaining dual-stage front passenger inflators of a particular type, as a precautionary measure. Approximately 198,000 Model Year 2008 Corolla and Corolla Matrix and Model Year 2008-2010 Lexus SC430 vehicles will be added to the recalls. The involved vehicles are equipped with a Takata-produced dual-stage front passenger airbag inflator which could potentially be susceptible to rupture when deployed in a crash. All known owners of the affected Toyota / Lexus vehicles will be notified by first class mail. Dealers will replace the airbag inflator or the airbag assembly with a newly manufactured one at no cost. Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time. For the most up-do-date Safety Recall information on Toyota, Lexus or Scion vehicles, customers should check their vehicle's status by visiting toyota.com/recall and entering the Vehicle Identification Number (VIN). Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin. For any additional questions, customer support is also available by calling Toyota Customer Service at 1-800-331-4331, or Lexus Customer Service at 1-800-255-3987. ###