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Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.

Buyers resent low inventories, prices over MSRP, study says

Vehicle inventory low, vehicle transaction prices high, customers fretting … welcome, J.D. Power, to the era of supply and demand. In a recently published survey from one of the auto industryÂ’s top analytical firms, findings show that customers' satisfaction with vehicle purchases in the United States this year has dipped for the first time in 10 years. The 2022 U.S. Sales Satisfaction Index (SSI) Study found that overall sales satisfaction has dropped to 786 (on a 1,000-point scale) from 789 in 2021. In that year, higher than expected trade-in values softened the effect of new vehicle price increases. But in 2022, on top of trade-in prices shrinking, many dealers elected to charge more than the ManufacturerÂ’s Suggested Retail Price, a factor that did not sit well with buyers. “When dealers charge more than MSRP, particularly with long-term loyal customers, they risk a potential long-term negative effect on customer advocacy and service business," said Chris Sutton, vice president of automotive retail at J.D. Power. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid the sticker price or less is 850, the Power report said. The lack of dealership inventory was also a customer irritant, J.D. Power found, a point that automakers and their dealers may want to consider. Many have maintained, or considered maintaining, a smaller inventory in the wake of the pandemic, keeping costs down and driving more customers toward factory orders. Regarding those consumers shopping for electric vehicles, the survey said that more than a third of them “failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction.” Said Sutton, “Salespeople donÂ’t need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle.” There are positives to the Power conclusions, however, especially for Alfa Romeo dealers. The Italian brand ranked highest in customer satisfaction among premium brands with a score of 833, with Porsche a very close second (831) and Lexus (819) third. Alfa is on something of a roll these days, with its compact Tonale crossover due for release in the spring, and a new sports car in the works. Meanwhile, in PowerÂ’s “mainstream brand”” segment, Buick ranked first with a score of 825, followed by Dodge (816) and Subaru (804), all performing higher than the industry average.

Is Subaru close to ditching 6-cylinder engines?

Despite niche outliers like the 6.2-liter supercharged Hellcat V8 and 7.0-liter V8 in the Chevrolet Camaro Z/28, we live in an era where small-displacement, turbocharged engines are becoming the norm. In many model lineups, a boosted four-cylinder now holds the place that a six might have just a few short years ago. At least in some markets, Subaru could be the next automaker to follow this path by axing its 3.6-liter boxer six-cylinder. Granted, that's not as much of a leap for Subie as some other automakers because the Japanese brand is already closely associated with turbocharged four-cylinder engines. The company's six-pot boxer is currently only offered in the Legacy and Outback in the US. Australian website CarAdvice spoke with Subaru deputy general manager of engineering Yoichi Hori about the company's future powertrain plans at least for Down Under. "Our research said the six-cylinder model is decreasing in the world. So that's why probably the future, many companies take the smaller displacement with a turbocharger, or diesel, or hybrid," said Hori to CarAdvice. He was also specific about which engine he had in mind. "In terms of the body size, a 2.0-liter with a turbocharger is enough, I think," he said. Hori said that the automaker stuck with the boxer-six for so long because of the turbocharged four-cylinder's higher maintenance costs. Slotting Subaru's 2.0-liter turbocharged boxer four-cylinder into the Legacy and Outback seems easy to imagine. After all, the mill already does duty in different tunes in the Forester and WRX in the US. Keep in mind, though, that Hori's words are aimed at the Aussie market. A rumor from earlier this year speculated the company's midsize models might get a smaller displacement six and the turbo four for some trims. Featured Gallery 2015 Subaru Legacy: First Drive View 35 Photos News Source: CarAdviceImage Credit: Copyright 2014 Jeremy Korzeniewski / AOL Green Subaru Wagon Sedan turbocharging