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Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.

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.

Subaru teasing new WRX S4 model ahead of Japanese debut

The Subaru WRX range is growing just a little bit larger, at least in Japan, with the automaker's teasing announcement of a new version called the S4. Unfortunately, the company is keeping details about its latest all-wheel drive sport sedan a closely guarded secret for the moment.
From what we can glean, it appears that the S4 might be a more luxurious take on the WRX. According to the release, the name stands for the four qualities that Subaru wants the sedan to have: "'Sports performance', 'Safety performance', 'Smart driving' and 'Sophisticated feel.'" As part of this focus, the car comes with the company's EyeSight camera system. Thankfully, we don't have too long to wait to find out what all of the buzz words actually mean because Subaru is unveiling the S4 on August 25 in Japan.
The automaker also launched a teaser website for the S4 that you can cheek out, here, but at the moment it doesn't provide any more details about the new sport sedan. The site just has countdown until the August reveal. There's also no indication yet whether this potentially more premium WRX could make it US shores. Scroll down to read the Subaru's rather concise teaser for the upcoming S4.