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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

Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

2016 Subaru Outback, Legacy recalled for driveshaft problem

The Basics: Subaru is recalling 3,251 examples of the 2016 Legacy built between Oct. 24, 2015, and Nov. 16 2015, and the 2016 Outback manufactured between Oct. 24, 2015, and Nov. 17, 2015. The Problem: The driveshaft could separate from the rear differential because the securing nuts aren't tight enough. If this happens, the driveshaft could hit the gas tank, leading to a fuel leak. Injuries/Deaths: Subaru spokesperson Michael McHale confirms to Autoblog there are no reports of accidents, injuries, or fires. The fix: Subaru dealers will inspect the nuts and tighten or replace them as necessary. If you own one: Subaru expected the recall to begin on December 10, so owners should receive notification very soon. Related Video: RECALL Subject : Drive Shaft May Detach From Differential Report Receipt Date: NOV 24, 2015 NHTSA Campaign Number: 15V794000 Component(s): POWER TRAIN Potential Number of Units Affected: 3,251 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU LEGACY 2016 SUBARU OUTBACK 2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2016 Legacy vehicles manufactured October 24, 2015, to November 16, 2015, and Outback vehicles manufactured October 24, 2015, to November 17, 2015. Due to the improper tightening of the securing nuts, the drive shaft may separate from the rear differential. CONSEQUENCE: If the drive shaft detaches from the rear differential, it may strike the fuel tank and result in a fuel leak, increasing the risk of a fire. REMEDY: Subaru has notified owners, and dealers will inspect the fastening nuts, and tighten or replace them, as necessary, free of charge. The recall began on December 10, 2015. Owners may contact Subaru customer service at 1-856-488-8500. Subaru's number for this recall is WQV-57. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.