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2014 Subaru XV Crosstrek Hybrid finally adds gas-electric option to the brand [w/video]

For a company that does a pretty great job of tying its vehicles to the environment - or, better said, to people who like to actually get out into the environment - Subaru hasn't exactly been a leader in green vehicle production. In fact, it's 2013 and the company is finally releasing its first-ever production hybrid, the XV Crosstrek Hybrid. Tom Doll, Subaru's executive vice president, admitted as much at the unveiling today at the New York Auto Show: "We at Subaru were not the first to market with a hybrid, but we sure made sure we did it right."
That may be, but for now the automaker doesn't want to tell us all the details of how right it is. We do know that the powertrain takes Subaru's 2.0-liter boxer engine and adds in a 13.4-horsepower electric motor and continuously variable transmission. All-wheel drive will be, of course, standard, and Subaru promises the XV Crosstrek Hybrid will offer the "same utility and versatility as the gasoline model," including 8.7 inches of ground clearance. The hybrid does weigh 300 pounds more, though, which required a re-engineered chassis.
The motor can move the lifted Impreza in all-electric mode up to 25 miles an hour (distance not specified). Subaru isn't talking precise fuel economy numbers, either, just that it will be the "most fuel-efficient all-wheel-drive crossover in America" and will unsurprisingly have start-stop functionality. We do hear, though, that the hybrid will get around 10-percent better fuel economy than the standard gas-only XV Crosstrek. The most efficient version of that car, the one with the CVT, gets 25 miles per gallon in the city, 33 highway and 28 combined. Whatever this hybrid XV Crosstrek gets, we expect Subaru'll sell a million in Portlandia. For more, scroll down to watch an official video and read the press release.

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.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade