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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

Subaru mulls motorsports return, nixes small CUV plans

The Subaru WRX STI breaking the automotive lap record at the Isle of Man might be just the beginning of the headlines trumpeting a Subaru racecar. According to the latest rumors, the Japanese brand is looking at taking motorsports more seriously in the future. That could possibly even mean endurance racing at Le Mans.
According to Auto Express, the brand is mulling a greater participation in motorsport, but the big question is where. The World Rally Championship isn't a certainty because it now favors smaller cars like the Volkswagen Polo. Subaru still competes in series like Rally America and Global Rallycross, but there are bigger stages to play on.
What's interesting, is that this commitment to motorsports comes right as the automaker is denying plans to build a small CUV for its passenger car lineup. According to Auto Express, the company has no intention of developing a crossover smaller than the current XV Crosstrek. Even if the sales are there, it would just cost too much to develop. In the US, at least, the XV is doing great with sales up 42 percent in July.

Subaru Forester named Motor Trend 2014 SUV of the Year [w/video]

Each year, Motor Trend hands out its coveted Golden Calipers to its Car, Truck and SUV of the Year, and in the latter category, this year's bragging rights belong to the redesigned Subaru Forester. In the 14-year history of the SUV award category, Subaru is the only automaker to win three times (2009, 2010 and 2014) and the Forester is the only model to make a return appearance having also won the award back in 2009. In the last six years, this award has either gone to a Subaru or to a luxury crossover/SUV (Mercedes GL-Class in 2013, Land Rover Range Rover Evoque in 2012 and Porsche Cayenne in 2011).
Out of the 13 new or updated crossovers and SUVs in contention for the award, the 2014 Forester came out on top thanks its value, fuel efficiency and fun-to-drive attitude. Rather than a head-to-head battle, the utility vehicles are all judged on six criteria (design, engineering, efficiency, safety, value and performance of intended function). Other vehicles on the consideration list included the Acura MDX, Jeep Grand Cherokee, Land Rover Range Rover Sport and Toyota RAV4.
Scroll down for a video report from Motor Trend as well as a press release from Subaru.