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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

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.

The next Subaru three-row will be the biggest Subaru ever

Subaru's trying to fix what hobbled the too-small, too-odd Tribeca, the company's last attempt at a three-row SUV, with a truly American-sized vehicle that will resemble the Viziv-7 Concept the company showed off at the LA Auto Show. We caught up with Dominick Infante, National Manager of Product Communications, to get the story about what that future SUV will be like. While he couldn't talk about engines ("[W]e'll have big news on that coming up," he said), Infante told us that the production SUV would be based on the new global architecture, a version of which underpins the new Impreza. That car, and its architecture, were "designed to meet crash testing out to 2025, so it's very overbuilt which is why we can go to something as large as this," Infante said. It's also coming soon. Infante told us that the production version be on the road in 2018, which we assume means it'll be a 2019 model year vehicle. Don't expect it to diverge from the company's general styling themes, either. Infante mentioned that the Tribeca, "was a very stylized vehicle ... [it] kind of didn't fit with the brand." We'd say that's an accurate assessment of a vehicle that always stood apart from the rest of the lineup. Subaru will play it safe to avoid that problem, making sure the production version of the Viziv-7 will be immediately identifiable as a Subaru. As Infante put it, "It's not going to be overly fancy or pretty; it'll be rough and tumble. We're going to stick with our Subaru DNA." And it'll also fix the Tribeca's other problem, which was size, particularly in the third row. Infante promised us that adults would fit in the Viziv-7's rear seats, although a quick glance in the Concept didn't confirm this because there wasn't an interior at all. So we'll have to wait and see, and note that there was no discussion of the size of those adults. Infante also promised configurable seating and cargo arrangements that would go beyond anything Subaru's done before – and since Subaru's only done one proper three-row, that means the Tribeca. Since it's debuting in 2018, it's a safe bet we'll see a concept that's much closer to production form next year. Stay tuned.Related Video: