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Subaru suppliers rely on gray market labor

The Subaru Forester is currently the Japanese brand's bestselling model in the US. A new investigation by Reuters is making some scathing allegations about how the popular model is actually made, though. The piece claims that many of Subaru's suppliers in Ota, Japan, are using low-paid foreign workers and asylum seekers to produce components that go into the CUV. The report says that these laborers are coming from places like China and Bangladesh, and they allegedly receive a pittance compared to their Japanese counterparts. Many said that they get about $6.60 an hour, but employment brokers can take a large portion of that pay. At just four suppliers Reuters estimates there are 580 foreign workers, or about 30 percent of the total workforce. The situation has turned Ota into a cultural melting pot because of the significant population of immigrant labor. The problem stems in part from Japan's tiny labor market, and the country's odd asylum system that doesn't allow some applicants to work legally. These suppliers produce many components for the Forester, including the seats, shocks, and fuel tanks. Reuters admits that the businesses have contracts with other Japanese automakers, as well, but Subaru receives the main focus of this piece, which you can read in full, here. When asked for comment about Reuters' report, Subaru of America provided Autoblog with the following statement: "Fuji Heavy Industries does not condone the exploitation of any class of worker, either in its own operations or within its supply chain. FHI expects all employees to be treated fairly, with dignity and respect and to be provided with appropriate workplace protections. The FHI CSR policy respects and adheres to the law and regulations of business as well as upholding human rights and international standards of behavior and the ethical standards of our stakeholders. Our supply chain network has been made aware of our policy and expectations."

Subaru beefs up new Exiga Crossover 7 in Japan

While we wait for Subaru to roll out a replacement for the troubled Tribeca crossover here in North America, in other markets the Japanese automaker continues to introduce other wagons of varying heights and capacities. Like the Levorg wagon offered in Japan and soon to be introduced in Europe, or the new Exiga Crossover 7 announced for the company's domestic market. We first caught a glimpse of the Exiga in concept form way back at the 2007 Tokyo Motor Show, and the seven-seat wagon entered production the following year. What sets this version apart is its higher stance, transforming it into a pseudo-crossover in similar fashion to how the Outback transformed the Legacy or the XV Crosstrek builds upon the Impreza. It's based on the same platform as well, and retains the existing Exiga's seven-seat cabin, with three rows of seating that fold down to make the interior volume adaptable to whatever needs might arise. The crossover version also rides higher on 17-inch wheels, with reinforced lower bodywork, a larger front grille and roof rails to give it a more rugged look. Power comes in the form of a 2.5-liter boxer four, mated to a continuously variable transmission and driving 171 horsepower to all four wheels in typical Subaru style. Fuji Heavy figures it will sell around 600 of these every month in Japan, but it looks unlikely to export it to other markets - least of all our own. Jacked up and ruggedized though it may be, our sources at Subaru tell us this vehicle is too small to have anything to do with the Tribeca replacement we've been waiting for and which promises to be a fair bit larger to suit American tastes. (Google-translated) Subaru new "CROSSOVER 7 (crossover Seven)" released April 16, 2015 Fuji Heavy Industries, the crossover model "CROSSOVER 7" of the new genre of "urban SUV x multiplayer car" (official name: "EXIGA CROSSOVER 7") the will be released today. CROSSOVER 7, the interior and exterior that incorporates elements of fashion and authentic SUV, all-weather AWD performance of Subaru unique, combines the 7-seater of packaging full of airy, is the new crossover model. You can also use in a variety of applications, and new proposal as "7-seater SUV" to achieve an active lifestyle.

Subaru ups US sales projections to 500k units

Subaru is going absolutely gangbusters so far in 2014, with growing year-over-year sales every month this year adding to the streak of 33 consecutive months. The prognosis is so positive that the Japanese brand is revising its 2014 forecast to 500,000 vehicles or more, from a previous estimated 460,000. If it reaches the goal, it would be the first time that the automaker hit the half-million mark here.
Subaru has been growing steadily in the US for a while now. Annual sales have increased for the past five consecutive years with 2014 not indicating for that to change. For August alone, the company moved 50,246 vehicles, up 22.37 percent year-over-year, and the business proclaimed it as the best month in its history.
According to Subaru, it believes that the growth for the last two years has been fueled by the latest Forester and XV Crosstrek last year and the new Legacy and Outback this year. "The market is telling us that we are delivering products that consumers want at the right prices," said Thomas J. Doll, president and chief operating officer at Subaru of America. Scroll down to read the company's full announcement.