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Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

2016 Subaru BRZ gets new touchscreen, lower price

Subaru is freshening up its lovable BRZ coupe for 2016, adding a spate of new options and tweaking the price ever so slightly. On the options front, the rear-driver gets a new 6.2-inch touchscreen multimedia system. Like the current car's standard 6.1-inch affair, it offers AM/FM/HD radio, satellite radio, and Bluetooth connectivity. The new system will also play nice with your smartphone, adding integration for Aha, Pandora, iHeartRadio, Stitcher, and a few other more mundane, everyday apps, adding weather and news features. A rear-view camera will also come standard. While the new infotainment system is added across the range, it's the only real change happening for 2016. The Limited trim remains identical to the 2015, offering owners an Alcantara trimmed cabin, with suede and leather seat accents and keyless access, while the car's exterior gets a body-color spoiler and fog lights. Dual-zone climate control, heated seats, and heated mirrors also come standard on the up-market trim. Despite the new 6.2-inch display, Subaru has actually cut prices by $300 on both versions of its two-door model for 2016. The base model kicks off at $26,190, while the Limited rings up at $28,190. Fans of the BRZ's six-speed automatic Philistines can get a two-pedal BRZ for $29,290, which includes the Limited trim equipment. Read on for the official press release, direct from Subaru. Related Video: SUBARU ANNOUNCES PRICING ON 2016 BRZ® MODELS SUBARU STARLINK™6.2"Multimedia System standard across all lines Priced $300 lower than previous model year Rear Vision Camera now standard Cherry Hill, N.J. - Subaru of America, Inc. today announced pricing for the 2016 BRZ line. Starting at $25,395, the BRZ, powered by a 200-horsepower 2.0-liter BOXER engine, marks a return to the fundamentals of sports car design, emphasizing low vehicle weight, an ultra-low center of gravity and precision steering. Available in Premium or Limited trim, BRZ models boast performance features, such as the sport-tuned suspension with front strut brace and TORSEN limited-slip differential. For 2016, the BRZ receives the SUBARU STARLINK 6.2" Multimedia System with a 6.2-in. single-touch gesture display, AM/FM stereo with HD Radio®, SiriusXM Satellite Radio, Radio Data Broadcast System, single-disc CD player, Bluetooth® hands-free phone connectivity and audio streaming, iPod® control, iTunes® Tagging, a USB port and an auxiliary input jack.

Subaru suppliers rely on gray market labor

The Subaru Forester is currently the Japanese brand's bestselling model in the US. A new investigation by Reuters is making some scathing allegations about how the popular model is actually made, though. The piece claims that many of Subaru's suppliers in Ota, Japan, are using low-paid foreign workers and asylum seekers to produce components that go into the CUV. The report says that these laborers are coming from places like China and Bangladesh, and they allegedly receive a pittance compared to their Japanese counterparts. Many said that they get about $6.60 an hour, but employment brokers can take a large portion of that pay. At just four suppliers Reuters estimates there are 580 foreign workers, or about 30 percent of the total workforce. The situation has turned Ota into a cultural melting pot because of the significant population of immigrant labor. The problem stems in part from Japan's tiny labor market, and the country's odd asylum system that doesn't allow some applicants to work legally. These suppliers produce many components for the Forester, including the seats, shocks, and fuel tanks. Reuters admits that the businesses have contracts with other Japanese automakers, as well, but Subaru receives the main focus of this piece, which you can read in full, here. When asked for comment about Reuters' report, Subaru of America provided Autoblog with the following statement: "Fuji Heavy Industries does not condone the exploitation of any class of worker, either in its own operations or within its supply chain. FHI expects all employees to be treated fairly, with dignity and respect and to be provided with appropriate workplace protections. The FHI CSR policy respects and adheres to the law and regulations of business as well as upholding human rights and international standards of behavior and the ethical standards of our stakeholders. Our supply chain network has been made aware of our policy and expectations."