2008 Suburu Outback Ltd Wagon Blue Awd on 2040-cars

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Subaru recalls 48.5k Legacy, Outback models for steering defect

The Basics: Subaru is recalling 48,500 Legacy sedans and Outback CUVs from model years 2016 and 2017. The Problem: According to the NHTSA bulletin, the steering column in affected vehicles may not have been machined properly. This could cause the angle of the steering wheel to have no impact on the direction of travel – the wheel will turn and the car won't. Injuries/Deaths: Neither Subaru nor NHTSA have indicated whether there were any injuries or deaths associated with this recall. The fix: Subaru will inspect steering columns on the affected vehicles and replace them as necessary. Naturally, repairs will be done free of charge. If you own one: Subaru and NHTSA advise that owners do not drive their vehicles until they've been inspected. While Subaru is sending letters to owners, dealers will also reach out directly to schedule an on-sight inspection or arrange to have the vehicle towed to the dealership. More information: If repairs are necessary, Subaru will cover all costs associated with towing and provide affected consumers a free loaner.

Subaru investing $400 million for Impreza production in Indiana

As a part of a goal to increase its US sales tally up to 500,000 annual units by the end of the decade, Subaru is investing $400 million in its Lafayette, IN assembly plant in order to start building the Impreza in 2016. According to Automotive News, about half of that investment will be for a new paint plant while another big chunk will be used to extend the assembly line to allow for the increased capacity.
Currently, Subaru's Lafayette plant is responsible for building about 200,000 Legacy, Outback and Tribeca models each year (not including around 100,000 Toyota Camry sedans), but Subaru-specific output will be increased to 300,000 units, requiring an additional 900 new hires as well. Although a previous report suggested the Forester and Impreza would be moving Stateside, this AN article only mentions the hatchback and sedan versions of the Impreza being added to Lafayette - and no mention of the closely related XV Crosstrek.

Will more efficient tech mean higher prices for Subaru?

If the latest ruling by the California Air Resources Board holds, then Subaru at least must build a plug-in hybrid in the coming years to comply with the Golden State's regulations. Fuel economy looks to improve across the board for the brand, though, thanks to $780 million going into the development of cleaner powertrains for this fiscal year alone. However, buyers might have to pay more for a Subie in the future after this boost in green spending. "Related costs are going up more than expected, bringing the profit margin downward," Fuji Heavy Industries President Yasuyuki Yoshinaga said to the Nihon Keizai newspaper in Japan, according to Automotive News. "We are a small company. We do not benefit as much from economy of scale as bigger companies, so we will have to make up for the increased costs by raising our brand value." At the moment, Subaru's electrified lineup in the US comprises just the XV Crosstrek Hybrid, but the company is reportedly planning to add more. Plus, Subie also wants to make its internal combustion engines more efficient. According to Automotive News, all of the brand's mills are getting direct injection by 2016, and cylinder deactivation and lean combustion cycles are on track for 2020. Earlier rumors also suggested that the automaker might bring the turbocharged four-cylinder boxer to more products, as well. While these more efficient models might cost more, Subaru must carefully maintain the balancing act of introducing the technology and keeping sales growing. As of May 2015, the brand had 42 straight months of year-over-year growth in the US and had record sales in the country last year. The company has already decided to significantly boost production capacity at its Indiana factory in hopes of keeping the good times rolling.