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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.

Subaru parent company celebrates 60th birthday

Fuji Heavy Industries, parent company of Subaru, celebrated its 60th anniversary on June 15. And while the company is largely known in the automotive world for its innovative all-wheel-drive cars, its history stretches far back before the days of symmetrical all-wheel drive, World Rally Blue and gold wheels.
FHI was founded, much like Germany's BMW, as an aircraft company. It went through a series of names before settling on its current title in 1953. And while its aerial successes were never quite as famous as Mitsubishi and its Zero, FHI did fly Japan's first jet-powered trainer. The same year, 1958 to be exact, it unveiled the iconic Subaru 360 minicar. While the 360 never quite caught on in the US (at least not with the fervor of the similarly laid-out Volkswagen Beetle), the small, affordable and simple Subie had a wide-ranging appeal across the island of Japan.
The rear-drive, rear-engined 360 was eventually joined by the 1000, Subaru's first front-engine, front-wheel-drive car. More importantly, the 1000 ushered in Subaru's use of a horizontally opposed engine. The Subaru Leone, which arrived in 1971, expanded on the 1000, by offering a combination we're all familiar with nowadays - all-wheel drive with a flat-four engine.

Subaru uses a mime and a toy car to explain why it loves the boxer engine

I will freely admit to struggling with why Subaru continues to stubbornly employ a boxer engine design while so few other automakers do the same. After all, with twice the number of cylinder heads and cams as a traditional inline four-cylinder engine, a boxer four is more complex, more expensive to manufacture and more cumbersome to service with few tangible benefits. Until recently, the company's engines struggled to meet the fuel economy numbers of its competitors while offering no real boon in horsepower or torque. Subaru seems to recognize I'm not the only one scratching my head.
In order to help us non-believers understand what's what, the company has employed a pair of mimes, a toy car and a few clay engines to demonstrate the folly of every other automaker on the planet. Subaru says the boxer offers up a lower center of gravity than either an inline four-cylinder engine or a V6, which I will gladly concede. The company also says the design offers up smoother operation.
I'll offer just two counterpoints here. First, an engine with a low center of gravity is excellent, but when vehicles like the Forester, XV Crosstrek and Outback boast more ground clearance than most mainstream SUVs, that argument flies out the window. Second, anyone who's spent any amount of time behind the wheel of a vehicle equipped with an inline four and then proceeded to move into one propelled by a boxer can tell you the latter has all of the idling manners of a small tractor. Check out the video below to see for yourself.