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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 shows racing versions of STI and BRZ

While we gear up for next week's Detroit Auto Show, the 2015 Tokyo Auto Salon is currently on going, and Subaru has marked the occasion by trotting out a pair of new racers. First up, we have the car shown above, with the company's entry to the 2015 Nurburgring 24 Hour Race. Subaru is entering a WRX STI in the grueling endurance race, which runs from May 14 to May 17. The left-hand-drive racer has received a fair crop of upgrades for endurance duty, although Subaru didn't really bother to elaborate on them, unfortunately. Next to the N24 car, Subaru introduced a striking version of its rear-drive BRZ, destined for the Japanese Super GT series. The team campaigning the BRZ will be led by Subaru's Hideharu Tatsumi, who will also be one of the drivers for the Nurburgring effort. Again, Subaru hasn't offered any info on technical changes for the BRZ GT300. Scroll down for the brief press release, and then check out the galleries of both cars. 2015 SUBARU Motorsport Activities Tokyo, January 9, 2015 – Fuji Heavy Industries Ltd. (FHI) - the maker of Subaru automobiles and Subaru Tecnica International Inc. (STI)* unveiled the new racing car developed from the WRX STI for 24 Hours Nurburgring endurance race in 2015 and announced an outline of Subaru Motorsport activities for 2015 at the Tokyo Auto Salon 2015 with NAPAC (Japan Car Parts and Aftermarket Promotion Association). *: Subaru Tecnica International Inc. (STI; President Yoshio Hirakawa; located in Mitaka, Tokyo) Nurburgring 24-Hour Race STI will participate in the Nurburgring 24-Hour Race (from 14 to 17 May in Germany) for eight consecutive years, with a vehicle whose performance has been enhanced from its base car – the Subaru WRX STI. The race car's performance such as aerodynamics, stability, body rigidity and engine output have been enhanced compared to the previous model. In addition, visibility for racing flags has also been improved by introducing a left-hand drive car. Like last year, Hideharu Tatsumi will take the helm of team operations as team manager, in addition to the development of the car. The drivers are Sasaki (Japan), Lasee (Germany), van Dam (Netherlands) and Tim Schrick (Germany), the winner of 2014 VLN endurance racing championship who newly joins the team. SUPER GT Series Subaru, with the "SUBARU BRZ GT300" race car, will participate in the SUPER GT series this year as well, widely regarded as Japan's top motorsports category.

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