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2014 Subaru Forester XT

Hitting The Mainstream Sweet Spot
The Forester does quite a bit of heavy lifting for Subaru. What was once a plucky little all-wheel-drive utility box has matured into a competitive crossover that accounts for a quarter of the company's total sales in the US. With those numbers continuing to swell even in the third generation's twilight hours, engineers and designers found themselves in the unenviable position of being asked to fix what ain't broke. Rather than reinvent the company's workhorse from the ground up, as we say in our first look at the CUV, Subaru honed the Forester to offer better fuel efficiency, more usable space and a more refined drive.
In doing so, the automaker hopes to toe that delicate line between luring in new devotees to the cult of Pleiades and keeping the brand's longtime fans smiling. While the fourth-generation Forester may have lost some of its trademark pluckiness in the pursuit of a more mainstream existence, there's no denying this is a more sorted vehicle than its predecessors. Make no mistake, the 2014 Forester is keen to carve out a larger chunk of the ever-plumping CUV market for itself, and for the first time in its history, it has the muscle to do so.

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

Subaru Indiana plant to stop building Toyota Camry

Subaru may be set to end production of the Toyota Camry at its Lafayette, IN facility by 2017, according to a report from the Louisville Journal-Courier and a CBS affiliate in Columbia, South Carolina. Speaking to the plant's Executive Vice President Tom Easterday, the whole affair sounds like a done deal.
"Based on changes in Toyota's production plans, they have decided that the award-winning Camry production contract will not be renewed," Easterday said. Easterday was quick to emphasize that just because Camry production would end, doesn't mean jobs will be lost. "There will be no loss of jobs at SIA as a result of this," he said, before adding that the loss of Camry production will have no impact Subaru's $400 million investment to ready the plant for Impreza production in 2016. That said, adding a promised 900 jobs may take longer than originally planned, as Camry production staff are set to be retrained on Subaru production.
SIA currently has the capacity to produce 100,000 Camrys per year, and began production of the family sedan in 2007 alongside production of the Subaru Outback, Legacy and eventually, the soon-to-be-discontinued Tribeca.