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Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

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.

Here's why the most-ticketed cars story is junk

A recent study from Insurance.com found that owners of the Subaru WRX were the most likely people in the US to be ticketed for traffic infractions, with 33.6 percent of them receiving a citation in the last three years. Coming in a close second and third were drivers of the Pontiac GTO at 32.7 percent and the Scion FR-S at 32.6 percent. At first glance, this report looks like just a mildly interesting anecdote to tell your friends during a lull in conversation, but there seems to be a serious problem with the methodology here that might be blowing these numbers way out of proportion. Insurance.com explains that it based the study on 557,238 drivers who requested online insurance quotes from its service from January 1, 2013 to July 2014. To make it onto the list, a vehicle needed over 50 quotes, and in the end that left 526 models. However, these facts are almost useless because the list isn't based on percentages from the whole pool. The study's ranking comes from owners of specific vehicles, and these numbers aren't mentioned anywhere in the company's press release. All we know about the sample size for each model is that it's higher than 50. Assuming that amount for the WRX means it would only take about 17 people with tickets using the site to put the sporty car in first place. These unknown model sample sizes might explain some of the extremely odd entries on the list. For example, the long-discontinued Mercury Topaz is in seventh place with 28.8 percent of its drivers receiving tickets. The GTO and Toyota Supra are also in the top ten and out of production. Just a few people searching for these vehicles could be the reason for these strange results. Obviously automotive studies have their place, but this one just appears to have gotten confused along the way. Scroll down to read the report to see what we mean. Ticket magnets: The cars with the most violations September 30, 2014 (Foster City, CA) – One in three drivers of the Subaru WRX has a recent traffic violation, according to a study by Insurance.com, the car insurance comparison-shopping website, putting the turbocharged, all-wheel-drive sport-compact atop its ranking of cars that get the most tickets. The most-ticketed brand overall was Scion, with 27.5 percent of all owners reporting a traffic violation. Insurance.com looked at data from 526 models and more than 557,000 recent customers.