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Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

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

2015 Subaru BRZ tS First Drive [w/video]

The Subaru BRZ is a brilliant driver's car: lightweight, rear-wheel-drive, tactile, nimble and fluid at speed. In terms of qualities that allow for dazzling point-to-point performance, it lacks only power and intense mechanical grip. In the US, options for tuning the BRZ to amplify its strengths or diminish its weaknesses are mostly found in the aftermarket. In Japan, meanwhile, driving enthusiasts can start with the factory-tuned model you see above: the BRZ tS. Designed and built with the engineering prowess of Subaru Tecnica International, the limited-edition tS is tuned for track competence over and above that of the base model. The intent of the tS wasn't lost on me as I stared over the front fender towards Turn 1 at Japan's Suzuka Circuit. Not just a proper place to test STI's claims of increased handling brilliance for its BRZ tune, but a perfect one. Suzuka is challenging – fast and technical in equal measure – and a playground for sorting out the margin of improvement from the standard that BRZ I know so well. Wait, Why Am I Here? Of course, Subaru didn't invite me and a half-dozen other motoring journalists to Japan for an academic exercise in JDM hotness. We were there at the behest of STI, as a first step in what will undoubtedly be a deliciously drawn-out expansion of the performance brand in North America. STI started life as the motorsports division for Subaru-parent Fuji Heavy Industries. But chances are good that you, like me, first encountered the three-letter-logo as a Cherry Blossom Red punctuation mark at the end of a WRX road or rally car. The world came to know STI through Subaru's 1990s WRC dominance and prominence in the Gran Turismo franchise. But outside of Japan the significance of the initials was known more as the designation of the top-dog Impreza, rather than a motorsport and performance engineering unit. The company is set on changing that and building STI into a performance brand that's as easily recognizable in America as M and AMG are today. That message was delivered a body in the STI Concept car at the New York Auto Show earlier this week, but as I mentioned then, we don't expect Subaru to turn up with a production-ready BRZ STI next year. First STI will deploy its parts catalog to the US, removing the half-hearted Subaru Performance Tuning parts business in the process. Next, according to a vague timeline presented in Japan, Subaru will offer a car like the tS to US customers in approximately 18 months.