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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

Will more efficient tech mean higher prices for Subaru?

If the latest ruling by the California Air Resources Board holds, then Subaru at least must build a plug-in hybrid in the coming years to comply with the Golden State's regulations. Fuel economy looks to improve across the board for the brand, though, thanks to $780 million going into the development of cleaner powertrains for this fiscal year alone. However, buyers might have to pay more for a Subie in the future after this boost in green spending. "Related costs are going up more than expected, bringing the profit margin downward," Fuji Heavy Industries President Yasuyuki Yoshinaga said to the Nihon Keizai newspaper in Japan, according to Automotive News. "We are a small company. We do not benefit as much from economy of scale as bigger companies, so we will have to make up for the increased costs by raising our brand value." At the moment, Subaru's electrified lineup in the US comprises just the XV Crosstrek Hybrid, but the company is reportedly planning to add more. Plus, Subie also wants to make its internal combustion engines more efficient. According to Automotive News, all of the brand's mills are getting direct injection by 2016, and cylinder deactivation and lean combustion cycles are on track for 2020. Earlier rumors also suggested that the automaker might bring the turbocharged four-cylinder boxer to more products, as well. While these more efficient models might cost more, Subaru must carefully maintain the balancing act of introducing the technology and keeping sales growing. As of May 2015, the brand had 42 straight months of year-over-year growth in the US and had record sales in the country last year. The company has already decided to significantly boost production capacity at its Indiana factory in hopes of keeping the good times rolling.

US Army tests Subaru-powered hybrid truck

The military has been studying the implementation of alternative drivetrains for years, a tiny sampling of which includes the diesel-electric hybrid technical hauler and L-ATV from Oshkosh Defense and the Aggressor from Quantum Technologies. There was also ADA Technologies' work with ultracapitors, General Motors' focus on fuel cells and the roll out of electric motorcycles for Special Forces. In the Ultra Light Vehicle (ULV) prototype vehicle pictured above, we have the latest developments in the Department of Defense's hybrid interest combined with a need to develop a lightweight replacement for the AM General Humvee.
In 2010 the Office of the Secretary of Defense put the Army's Tank Automotive Research, Development, and Engineering Center (TARDEC) in charge of developing a personnel carrier that could "balance payload, performance and protection," and do so without exorbitant cost. Armored Humvees can weigh more than seven tons, and while the ULV is just under 14,000 pounds, the new vehicle can do a lot more with its weight.
The Subaru turbodiesel under the hood puts out 175 horsepower and 260 pound-feet of torque. That's not much for pulling 13,916 pounds, so it's assisted by two Remy 410HVH HT electric motors each capable of adding 268 continuous hp and 369 peak hp, along with 844 lb-ft of continuous torque or 1,221 ft-lbs at peak. They're only limited by the 14.2 kWh lithium-ion battery rated at 65 kW of continuous power and 180 kW of peak power, but still, TARDEC says the ULV can do 21 miles on electric power and on the flats has a combined range of 337 miles at 35 mph.