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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's first hybrid drawing close

In 2011 Subaru parent company Fuji Heavy Industries confirmed that a hybrid Subaru would debut this year. Ever since, there's been speculation about what kind of technology the gasoline-electric hybrid would use - Subaru's own or some version of the Toyota Hybrid Synergy Drive, which car would debut the new system - Forester, Legacy, or Outback - and whether it would come to America or be a Japan-only model.
A report in The Detroit Bureau says that whatever that first model is, it could be shown as soon as the New York Auto Show, and while the company feels it's a must-have offering for the Japanese market it will also come to the US. It will have a Subaru-developed mild hybrid system that could have been previewed by the Hybrid Tourer concept shown at the 2009 Tokyo Motor Show, and is not expected to be able to drive on electric power alone. The Hybrid Tourer used a direct-injected, 2.0-liter boxer engine connected to a CVT and assisted by an electric motor rated at 13 horsepower. Subaru has yet to give anything away about the details of its hybrid plans, so we'll look to New York for the long-awaited unveil.

Subaru WRX S4 gets big power bump in Japan

A month after originally teasing it, Subaru is finally unveiling its WRX S4 model for Japan. It's a bit more than just a plush take on the sport sedan, because Subaru is fitting a more powerful version of the 2.0-liter, turbocharged boxer four-cylinder engine than we get on these shores.
The company says that S4 stands for "'Sports performance', 'Safety performance', 'Smart driving' and 'Sophisticated feel," and it certainly looks like this Rex ticks all of those boxes. The most surprising feature is the Japanese model's 2.0-liter turbo engine boasting 296 horsepower (221 kilowatts) and 295 pound-feet (400 Newton-meters) of torque in this application. That's quite a healthy upgrade over the 268 hp and 258 lb-ft that Americans get in the standard WRX, and it's even nipping at the heels of the 305 hp and 290 lb-ft from the STI with a 2.5-liter mill that we get over here.
While extra power is always welcome, enthusiasts might not be so thrilled that Subaru's Sport Lineartronic Continuously Variable Transmission is the sedan's only available gearbox. However, it offers a simulated eight-speed shifting mode when drivers notch the car into Sport# driving mode. Of course, the S4 also packs Subie's trademark all-wheel drive with Vehicle Dynamics Control and Active Torque Vectoring as standard.