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Subaru nixes plans for US-built XV Crosstrek

Subaru is on a sales tear, with numbers up 21 percent through the end of November compared to last year. It's been investing in its Indiana factory, and having ended its contract to build the Toyota Camry there, the 400,000-unit capacity was once seen as more than Subaru needs. At some point Subaru had plans to build the XV Crosstrek here in the US, but Reuters reports that the company has changed its mind and will build the little crossover Scooby in Japan, in the same Gunma Prefecture factory where the Impreza, BRZ and Levorg are built. The report cites "the relatively high sales price," the weakening yen versus the dollar and capacity constraints at the Indiana facility. For a planned production run of 65,000 Crosstrek units annually, the new math – especially the yen valuation, which has declined against the dollar to a rate not seen since 2007 – makes Japanese production a viable option. Subaru isn't the only manufacturer taking its toys back home, either: the Reuters report says Toyota is considering shifting some Camry production back to Nippon, while Nissan plans to do the same with the Rogue. Our guess is that if Subaru sales continue the trend they've been on for years, the assembly decision will give them more local flexibility here for addressing it. Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: ReutersImage Credit: Copyright 2014 AOL Plants/Manufacturing Subaru Crossover subaru xv crosstrek

Subaru debuts tougher-looking Outback for Australia [w/poll]

If you're going to name a car after a specific location or region, you'd better make sure it's taken seriously in the place it's named for. You're not likely to see a Chevrolet Monte Carlo in Monaco, and the Alfa Romeo Montreal was never even officially offered in North America, but the Subaru Outback is another story.
Subaru apparently takes the Australian market, whose wilderness its jacked-up Legacy wagon is named for, very seriously. So it is apparently rolling out a revised version of the current Outback in Australia itself. The updated Outback, which arrives less than a year before the all-new model is expected to bow, answers Aussie customer feedback with a more rugged look. It's got new roof rails, body cladding, wheel arches, mud flaps, underbody protection plates and blacked-out headlight surrounds and grille trim.
The Motor Report reports that the AUD $2,500 worth of extra equipment - around $2,300 USD - comes with just an AUD $500 ($468) price hike. As far as we can tell, though, there are no plans to bring this latest look to our shores - Subaru has already detailed North America's Outback for the 2014 model year, and these changes aren't mentioned. Should this look be offered in our market? Vote in the poll below and then have your say in Comments.

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute