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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 comes out on the right side of history, stands up against Indiana law

Well, I may as just get it out there straight up and let some percentage of you dear readers take your shots in the comments below: I find Indiana's new "religious freedom" law that opens the door to discrimination against gay people to be reprehensible, along with all the other laws across the country that do the same thing but with different wording. So I was thrilled today when Subaru, which has a plant in Lafayette, IN, came out and said it finds the new law pretty awful too. The statement, issued by Michael McHale, the company's director of corporate communications, says that while the company recognizes that each state gets to decide its own laws, the automaker does "not agree with any legislation that allows for discrimination, or any behavior or act that promotes any form of discrimination. Furthermore, we do not allow discrimination in our own operations, including operations in the state of Indiana." Although McHale told Autoblog Subaru is not considering leaving Indiana, the newly passed legislation has prompted others to say they want to take their business elsewhere. The NCAA said Monday it is taking a look at the law and trying to determine if it will be able to continue holding large sporting events in the state, according to ESPN. In a piece in The Washington Post, Apple's Tim Cook warned that these kinds of laws are being passed in dozens of states across the country and they are bad for business. He spotlighted one proposed law in Texas that would strip pension benefits from clerks who issue marriage licenses to gay people, even if the Supreme Court declares gay marriage legal. "Opposing discrimination takes courage," he wrote. "With the lives and dignity of so many people at stake, it's time for all of us to be courageous."

Ward's reveals annual 10 Best Engines list for 2013

Ward's Auto has released its annual 10 Best Engines award winners. The 2013 list covers the full width and breadth of the internal combustion spectrum, from a spate of efficient four-cylinders to the most powerful production V8 on the planet. As always, the entries must be available in a production vehicle in the first quarter of 2013 with an MSRP of less than $55,000. The supercharged 3.0-liter V6 from the Audi S5 held on for the fourth consecutive year, and BMW earned two spots on the list with its turbo 2.0-liter four-cylinder and turbo 3.0-liter inline-six.
Ford pulled in two awards for its 2.0-liter EcoBoost four-cylinder and and the supercharged 5.8-liter V8 from the Shelby GT500. Honda matched BMW and Ford with two wins of its own. Wards awarded the 2.4-liter four-cylinder from the Honda Accord Sport as well as the 3.5-liter V6 from the Honda Accord. Chrysler, General Motors and Subaru each garnered a spot on the list as well for the 3.6-liter V6 in the Ram 1500, the turbo 2.0-liter four-cylinder in the Cadillac ATS and the 2.0-liter four-cylinder the Subaru BRZ, respectively. You can read the full press release below for more information.