2013 Subaru Impreza Wrx Base on 2040-cars

Auto blog

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

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

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute