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Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.

Next-generation Subaru Forester spotted with minimal camouflage

Though the Subaru Forester received a slight refresh last year, the crossover is due for a full redesign, since its bones date back to the 2014 model year. That redesign is coming soon though, as revealed by these spy shots. The crossover looks relatively similar to the current one, but it's completely new underneath. As for the outside, it's definitely an evolutionary design. The boxy shape and signature grille clearly derive from the current model. But there are changes. The prow doesn't slope back as much as the current one. Instead, it's nearly upright, and the corners are pushed forward, too. It gives the Forester a more truck-like appearance. The headlights also look as though they sit higher and wrap around more. The lower vents that were integrated in bumper creases on the current one appear to have disappeared, as well, perhaps for a more conventional front bumper. Moving to the side and the back, we can just make out some slightly more complicated surfaces on the flanks. They look a bit like the subtle creases found on the Impreza and the Crosstrek. The taillights also appear to be inspired by the new Impreza and Crosstrek. Rather than the small units in the body of the current Forester, the new lights extend into the rear hatch. Not only does this bring the crossover's styling in line with Subaru's other offerings, this may improve the size of the hatch opening, as Subaru says the Impreza's new lights did. Underneath the modest redesign should be Subaru's global architecture, which currently underpins the Impreza and Crosstrek. Our experience with both of those cars showed that the platform has yielded agile handling and solid ride quality. And if the Forester continues to offer a turbocharged engine, it should rectify the power (or rather, lack thereof) in the Impreza pair. The platform will also underpin the upcoming three-row Ascent SUV, which is expected to be released next year. With that in mind, and the near production-ready body, we'd say we'll see the new Forester revealed either at the end of this year, or early next year. Related Video: Featured Gallery 2019 Subaru Forester View 9 Photos Image Credit: KGP Photography Spy Photos Subaru Crossover

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute