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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.

Subaru might build WRX hatchback after all

The 2015 Subaru WRX is awesome. Really awesome. We told you as much in our first drive of the new sedan back in December. Honestly, our only complaint about Fuji Heavy's new performance machine is that it's no longer offered as a hatchback - the new WRX is a sedan-only affair, despite the more functional five-door variant accounting for some 50 percent of sales in the car's last generation.
But there's hope on the horizon, if a report from Australia's Motoring.com is to be believed. Speaking with Masuo Takatsu, Subaru's general manager for the WRX, the company is now re-considering putting the "hatch" back in its hot hatch.
"We have received strong interest from the US, where the hatchback was 50 percent (of previous-generation WRX sales), so we're now considering," Takatsu told Motoring, noting that the United States is Subaru's main target for this car. Additionally, Takatsu said the company's decision to only offer the sedan was the result of limited engineering resources, echoing statements we've previously heard from Subaru's US arm.

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.