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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 supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.

Subaru Germany sends off BRZ with 100-unit Final Edition

Both the Subaru BRZ and its Toyota 86 Sibling have been confirmed to have an impending second generation (well, confirmed before the pandemic), which means it's about time to start warmly saying goodbye to the current models. They deserve it, because although many will remember the sports cars for their lack of power, they should be remembered as affordable, sharp-looking, flickable sports cars with rear-wheel drive, manual transmissions, and an extremely fun chassis. As first reported by Motor1, Subaru Germany is sending the BRZ off with a limited-run Final Edition. To start, no, the Final Edition does not have any powertrain upgrades. In Germany, the 2.0-liter remains the same at 197 horsepower and 151 lb-ft of torque. A six-speed manual is the base transmission setup, while a six-speed automatic transmission will cost an extra $1,850.  The Final Edition improves where most of the other BRZ and 86 special editions have improved: handling. Subaru added Sachs shock absorbers and Brembro brakes with red-painted calipers. Surprisingly, the BRZ keeps its 17-inch wheels rather than adopting the available 18-inchers. The standard paint for the Final Edition is Crystal Black Silica, not picture here, but the WR Blue Pearl shown above costs the equivalent of an extra $109. And buyers will want to get the blue paint, because the inside has blue accents. The gearshift lever, door trim, instrument panel, and leather steering wheel all have blue stitching. The front leather-and-Alcantara seats are blue and black, while the rear seats are all black, and the floor mats have blue BRZ logos on them. A Final Edition interior badge notifies occupants of its special nature. The most significant part of this release is its limited availability. The Final Edition will be held to 100 units for the German market, which will have an instant collectible on its hands. Before destination, the list price will be the equivalent of about $43,800.