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California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

Subaru weighing Outback vs Forester approach for seven-seater

Subaru is gearing up for a return to the seven-seat crossover segment, and it's focusing the new model on the US market, but just which approach it will take has yet to be decided. One possibility, according to Automotive News, would be to position it as a larger counterpart to the Outback wagon, with rugged off-road styling. The other would be to sell it as a big brother to the Forester, with cleaner styling. One thing Subaru most definitely does not want to repeat is the Tribeca fiasco, so we wouldn't expect the new model to carry that same nameplate. Introduced in 2006, the Tribeca's divisive front-end styling kept it from being a serious player, and it underwent a facelift only two years later. It was withdrawn from the market altogether after 2014. The company had targeted moving 36,000 units of the Tribeca each year, but sold fewer than 2,800 in America in 2011, barely over 2,000 in 2012, less than 1,600 in 2013 and just a few hundred in 2014. The new seven-seat crossover will go after the likes of the Toyota Highlander, Nissan Pathfinder and new Honda Pilot among three-row Japanese crossovers. Like those rivals, it will be built in the US for the US market – namely at Subaru's assembly plant in Indiana, the same state where the Highlander is produced. The new crossover's arrival will, according to reports, mean that the Levorg wagon offered in Japan and Europe won't be offered Stateside. Related Video:

Subaru axes WRX and STI in UK

Auto Express reports Subaru will stop selling the Impreza, WRX and WRX STI in the UK starting next year. A spokesperson with the company said Subaru has been evaluating the Impreza and its performance in the UK for the past year and has finally decided to pull the plug. That means all of the model's performance iterations will also drop off of dealer lots, including the WRX and the STI. The unnamed spokesperson said Subaru UK currently has no plans to to bring more stock of either model once the current supply sells out. That means buyers in the UK have until around early summer 2013 to get their hands on an STI.
The move comes in response to slow demand, which has trickled off in the face of competition that best the machine in terms of refinement, performance and emissions. Moving forward, the automaker says it will focus its sales efforts on models like the XV Crosstrek, Forester and Outback, as well as the company's new BRZ sports coupe.