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2017 Subaru BRZ gets more power, optional Performance Pack

Most of the recent action with Toyobaru sports cars has centered around the Toyota side, which saw the Scion FR-S replaced by the updated and rebranded 2017 Toyota 86 for our market. Now, Subaru's version of the rear-drive coupe is getting a similar set of updates. It gets to keep its name, though. Like its Toyota-badged twin, the BRZ sees some engine updates – changes to the shared 2.0-liter, flat-four's internals are aimed at reducing friction. A new aluminum intake and a redesigned exhaust bump output up from 200 horsepower and 151 pound-feet of torque to 205 ponies and 156 lb-ft on manual-transmission models. To go along with that, the manual's final-drive ratio has been changed from 4.1:1 to 4.3:1, so there should be an improvement in acceleration. (Incidentally, this must have been Toyota meant when it said the 86 gets different manual gear ratios for 2017.) It's not the turbocharged engine some have been craving, but we can all agree that a little extra output is better than none. Those paying for the automatic transmission are left out, though. The Subaru has also gotten a small set of suspension updates. There are new springs and dampers, a larger rear sway bar, and some adjustments to structural braces to increase rigidity, so nothing too dramatic. Subaru has reprogrammed the stability-control system to allow drivers more freedom, which has led to a showy rebranding of the Sport mode to a new Track setting. A new option is the Performance Package, which includes Brembo brakes with upsized rotors fore and aft, new Sachs-branded shocks, and black 17-inch wheels. The Performance Pack is only available on Limited models with a manual transmission, further strengthening the argument against the auto. The Performance Pack also helps differentiate the Subie from its Toyota pal, as those items aren't available on the 86. There are some subtle aesthetic changes too, similar to those on the 86. (Noticing a pattern?) Subaru restyled the front and rear fascias, and added LED lamps at all four corners. Limited models come with a new 4.2-inch LCD display that sits to the right of the tachometer; in addition to mechanical info like oil temp, water temp, and battery voltage, it can show a G meter, a steering-angle indicator, gas/brake meters, and a stopwatch. The 2017 BRZ Premium and Limited will hit dealers in September. You'll have to wait until winter of 2017 to get your hands on a car equipped with the Performance Pack.

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

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