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Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute

Subaru partners with Magellan for smartphone-based navigation

With tech in the air this week at the Consumer Electronics Show, Subaru announced that it named Magellan SmartGPS as its mapping partner in future Subaru vehicles – without putting an exact date on when that "future" will be. The appointment means that Magellan's smartphone-based cloud navigation, which works on both Apple iOS and Android, will port fully voice-guided navigation using constantly updated maps to the head unit in the car. Magellan already sells a standalone SmartGPS unit that you can buy from major retailers, and it can communicate with other wireless devices to find destinations and transfer directions. However, with the rise of smartphones and with major tech players becoming baked-in fixtures inside vehicles, the sales of portable navigation devices have gone into freefall - from 15.1 million units in 2008 to around 4.3 million units in 2019. The deal with Subaru helps Magellan continue to focus on its core strength. The caveat is that your car will need to have the Subaru Starlink system. It is included in some of the brand's vehicles, like the Impreza and the Crosstrek. On others it is a cost option - it's part of a $1,795 package on the Legacy, a $2,295 package on the Outback. The press release below can tell you more. Subaru Names Magellan Its Smartphone-based Cloud Navigation Partner Magellan SmartGPS Navigation to Power Future Subaru Vehicles Equipped with the SUBARU STARLINK Platform Powered by Clarion's Smart Access System Las Vegas, NV – January 4, 2016 – Magellan's SmartGPS navigation has been selected to be included with Subaru vehicles featuring the SUBARU STARLINK platform. The SUBARU STARLINK infotainment systems, available in Subaru vehicles, utilize Clarion's advanced Smart Access™ cloud connectivity platform to seamlessly sync and control cloud-based applications directly through the infotainment system's screen, providing immediate access to Magellan's SmartGPS navigation. Designed to support both Apple iOS and Android smartphones, the SUBARU STARLINK app brings continuously updated cloud applications to the vehicle's center stack display. Drivers can then access all STARLINK approved apps and services effortlessly, including Magellan's SmartGPS, allowing for safe access and display on the vehicle's touch panel. Magellan SmartGPS navigation will be available on future Subaru models.

Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier