2014 Subaru Impreza Wrx Sti on 2040-cars

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Subaru mulling expanding Indiana plant for Forester, Impreza

Thanks to currency fluctuations and their impact on the bottom line, a growing number of Japanese automakers are starting to increase vehicle production in the US, and it appears Subaru could be the next to do so. According to Bloomberg, Subaru is looking into expanding production capacity at its Lafayette, Indiana assembly plant, which currently builds the Outback, Legacy and Tribeca as well as the Toyota Camry.
Subaru's Indiana plant currently has an annual maximum capacity of 310,000 units, but the automaker is expecting to far exceed that figure this year, with year-to-date sales of 299,788 units through November (not including Camry) - an increase of almost 30 percent over 2011. The report indicates that Subaru could expand the plant to add as many 50,000 additional units to the plant, likely in the form of either the Forester or Impreza.

2014 Subaru XV Crosstrek Hybrid priced from $25,995* [w/video]

Subaru revealed its 2014 XV Crosstrek Hybrid at the New York Auto Show earlier this year, and with the high-riding hybrid hatchback arriving at dealers by the end of this year, pricing has finally been set. Starting at $25,995 (*not including at least $825 for destination charges, which may vary in certain states), the new hybrid model represents a $4,000 premium over the standard 2014 XV Crosstrek models equipped with the continuously variable transmission.
Stepping up to the XV Crosstrek Hybrid Touring model, which adds navigation, leather seats and a moonroof, raises the price to $29,295. Subaru has still yet to release many key details for the XV Crosstrek Hybrid including fuel economy, combined horsepower and all-electric driving range, but the powertrain consists of a 2.0-liter four-cylinder Boxer engine mated to a 13.4-horsepower electric motor integrated into the CVT. We expect to get official data closer to the car's on-sale date, but until then, scroll down for more info about the 2014 XV Crosstrek Hybrid as well as some b-roll driving footage of the car.

Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru