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Subaru nixes plans for US-built XV Crosstrek

Subaru is on a sales tear, with numbers up 21 percent through the end of November compared to last year. It's been investing in its Indiana factory, and having ended its contract to build the Toyota Camry there, the 400,000-unit capacity was once seen as more than Subaru needs. At some point Subaru had plans to build the XV Crosstrek here in the US, but Reuters reports that the company has changed its mind and will build the little crossover Scooby in Japan, in the same Gunma Prefecture factory where the Impreza, BRZ and Levorg are built. The report cites "the relatively high sales price," the weakening yen versus the dollar and capacity constraints at the Indiana facility. For a planned production run of 65,000 Crosstrek units annually, the new math – especially the yen valuation, which has declined against the dollar to a rate not seen since 2007 – makes Japanese production a viable option. Subaru isn't the only manufacturer taking its toys back home, either: the Reuters report says Toyota is considering shifting some Camry production back to Nippon, while Nissan plans to do the same with the Rogue. Our guess is that if Subaru sales continue the trend they've been on for years, the assembly decision will give them more local flexibility here for addressing it. Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: ReutersImage Credit: Copyright 2014 AOL Plants/Manufacturing Subaru Crossover subaru xv crosstrek

Subaru could have all-electric CUV by 2021

Subaru doesn't exactly have an industry-leading electric vehicle program. It sells the Impreza Sport Hybrid in Japan and the Crosstrek Hybrid in the US. There have been electrified rumors and concept cars, but Subaru has been more content to promote getting out into the environment rather than using your car to help it. But maybe this'll change in 2021. That's when, according to a report in the Nikkan Kogyo Shimbun newspaper in Japan, the automaker will introduce an midsize, all-electric AWD CUV in the US. The EV would be based on the Forester or Outback and use a new global platform. As for where the cells, batteries, or motors would come from, there was no mention. The newspaper cited unnamed sources and all that an on-the-record spokesperson would say is that, "We have yet to decide on any specifics at the moment." Or, as Subaru of America's national manager of product communications, Dominick Infante, told AutoblogGreen, "It's a bit early for us to discuss electric vehicles and PHEVs." There's a good reason for Subaru to be considering going electric, and it's the same one that's pushing the entire industry to zero-emission vehicles: tighter emissions regulations. As much as we want to know everything now, it appears that Subaru is taking the same approach to all-electric vehicles as it did with hybrids. At the New York Auto Show in 2013, Subaru's executive vice president Tom Doll said that, "We at Subaru were not the first to market with a hybrid, but we sure made sure we did it right." If it takes the company until 2021 to release an EV, it had better get it right. Related Video:

2014 Subaru Forester priced from $21,995*

Subaru has officially announced that its all-new 2014 Forester will carry a base MSRP of $21,995 when it hits dealerships early this year, (*not including $895 in destination fees). This represents an increase of $700 over the outgoing 2013 model.
That new price will net buyers the base 2.5i model equipped with a six-speed manual transmission. Subaru will also sell the 2.5i engine in Premium, Limited and Touring trims, though the automaker has not released specific price points for those models. These models are powered by a 2.5-liter four-cylinder engine that produces 170 horsepower and 174 pound-feet of torque. Subaru says that with its standard all-wheel drive, the Forester 2.5i will be good for fuel economy numbers of 24/32 miles per gallon (city/highway) when equipped with the company's continuously variable transmission. Manual models see those numbers drop to 22/29 mpg.
The more powerful Forester 2.0XT will only be offered in Premium and Touring trims, starting at $27,995 (not including destination). These models are powered by a turbocharged 2.0-liter inline four, sending 250 hp and 258 lb-ft to all four wheels. Fuel economy doesn't suffer terribly with this more powerful engine, as only the CVT is offered. Subaru quotes figures of 23/28 mpg here.