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Subaru Indiana plant to stop building Toyota Camry

Subaru may be set to end production of the Toyota Camry at its Lafayette, IN facility by 2017, according to a report from the Louisville Journal-Courier and a CBS affiliate in Columbia, South Carolina. Speaking to the plant's Executive Vice President Tom Easterday, the whole affair sounds like a done deal.
"Based on changes in Toyota's production plans, they have decided that the award-winning Camry production contract will not be renewed," Easterday said. Easterday was quick to emphasize that just because Camry production would end, doesn't mean jobs will be lost. "There will be no loss of jobs at SIA as a result of this," he said, before adding that the loss of Camry production will have no impact Subaru's $400 million investment to ready the plant for Impreza production in 2016. That said, adding a promised 900 jobs may take longer than originally planned, as Camry production staff are set to be retrained on Subaru production.
SIA currently has the capacity to produce 100,000 Camrys per year, and began production of the family sedan in 2007 alongside production of the Subaru Outback, Legacy and eventually, the soon-to-be-discontinued Tribeca.

2014 Subaru Forester priced from $21,995*

Subaru has officially announced that its all-new 2014 Forester will carry a base MSRP of $21,995 when it hits dealerships early this year, (*not including $895 in destination fees). This represents an increase of $700 over the outgoing 2013 model.
That new price will net buyers the base 2.5i model equipped with a six-speed manual transmission. Subaru will also sell the 2.5i engine in Premium, Limited and Touring trims, though the automaker has not released specific price points for those models. These models are powered by a 2.5-liter four-cylinder engine that produces 170 horsepower and 174 pound-feet of torque. Subaru says that with its standard all-wheel drive, the Forester 2.5i will be good for fuel economy numbers of 24/32 miles per gallon (city/highway) when equipped with the company's continuously variable transmission. Manual models see those numbers drop to 22/29 mpg.
The more powerful Forester 2.0XT will only be offered in Premium and Touring trims, starting at $27,995 (not including destination). These models are powered by a turbocharged 2.0-liter inline four, sending 250 hp and 258 lb-ft to all four wheels. Fuel economy doesn't suffer terribly with this more powerful engine, as only the CVT is offered. Subaru quotes figures of 23/28 mpg here.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.