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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.

Toyota's hydrogen fuel cell Mirai isn't good enough to be a Lexus

It looks like the first hydrogen fuel-cell vehicle from Lexus will be faster than previously advertised, but it will get to the market slower than expected. It's all part of the paradox involved with Toyota looking to broaden its fuel-cell technology beyond the Mirai. Either way, the first Lexus fuel-cell vehicle is slated to start sales by the end of the decade, said Auto Express, citing comments from Alain Uyttenhoven, head of Lexus Europe. Uyttenhoven noted that it'd take an SUV to provide enough space to accommodate the packaging for the Lexus fuel cell powertrain. That comment may imply that the hydrogen-fueled powertrain from Lexus will offer similar performance to that of the Lexus RX450h hybrid SUV. That model delivers 300 horsepower and boasts a 0 to 60 mile-per-hour time of about seven seconds. Such a mill would be a departure from what we'd previously reported on Toyota's plans to expand its fuel-cell technology to its Lexus luxury badge. With Toyota believed to be planning to unveil as many as three fuel-cell models in time for the 2020 Summer Olympics in Tokyo, the Japanese automaker said early last year that it may have a Lexus fuel-cell vehicle available as soon as 2017, while reports suggesting the model would be a Lexus LS-based sedan. Additionally, the Mirai's fuel-cell powertrain had been believed to be the platform for the proposed Lexus fuel cell from the moment that model started sales in California last year. Apparently, though, the Mirai's 152-horsepower powertrain, coupled with a full-tank range that would be about 20 percent less than the 300-mile Mirai, isn't up to snuff for Lexus duty. Related Video: News Source: Auto Express via Hybrid CarsImage Credit: Jonathon Ramsey / AOL Green Lexus Toyota Hydrogen Cars mirai

Toyota sees Camry share loss despite predicting increasing sales

Toyota may be set to lose share the midsize sedan market. While speaking with Automotive News, Toyota North America CEO Jim Lentz said that if his company kept pace with the current swell in the market for family four doors, Toyota would need to sell around 500,000 Camry models. "I'm not sure we can do much more than 400 [thousand] today," Lentz said.
But that doesn't mean Camry sales are shrinking - on the contrary, Lentz thinks Toyota will likely sell more Camry units in 2013 than it did in 2012, it's just that the company isn't keeping pace with segment's current explosion in popularity. Industry wide, midsized sedan sales have increased by 20 percent. "Are we going to lose [Camry] share? Probably so," Lentz said, "but we will continue to grow in raw volume."
Toyota sold 404,886 Camry units last year, and the company just revised its 2013 sales objective from 2.18 million units earlier this year to 2.2-million plus units, so while things are looking up for the brand and Camry sales may be on the rise, Toyota may not have the muscle to keep up its share in the sedan segment. Whether that's because of a production bottleneck or a predicted sales ceiling isn't clear. We've got a call in and will update this news item if/when we learn more.