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Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV

Subaru says Japan car output halted due to defective part

TOKYO — Subaru Corp said its sole car factory in Japan accounting for roughly 60 percent of global production had halted output a week ago after it discovered a defect in a component procured from a supplier. The Asahi newspaper first reported the suspension at the Gunma plant on Wednesday, saying the defect was found in the power steering component. A spokesman for Subaru says the problem affecting Crosstreks and Foresters was discovered early. None of the affected vehicles had reached consumers, and won't until they've been repaired. Perhaps 10,000 cars, maybe fewer, were intended for the U.S. market. Subaru, which exports the majority of its domestically made cars, could not say when production would resume. Production at Subaru's plant in Indiana was unaffected.Related Video: Plants/Manufacturing Subaru

US Army tests Subaru-powered hybrid truck

The military has been studying the implementation of alternative drivetrains for years, a tiny sampling of which includes the diesel-electric hybrid technical hauler and L-ATV from Oshkosh Defense and the Aggressor from Quantum Technologies. There was also ADA Technologies' work with ultracapitors, General Motors' focus on fuel cells and the roll out of electric motorcycles for Special Forces. In the Ultra Light Vehicle (ULV) prototype vehicle pictured above, we have the latest developments in the Department of Defense's hybrid interest combined with a need to develop a lightweight replacement for the AM General Humvee.
In 2010 the Office of the Secretary of Defense put the Army's Tank Automotive Research, Development, and Engineering Center (TARDEC) in charge of developing a personnel carrier that could "balance payload, performance and protection," and do so without exorbitant cost. Armored Humvees can weigh more than seven tons, and while the ULV is just under 14,000 pounds, the new vehicle can do a lot more with its weight.
The Subaru turbodiesel under the hood puts out 175 horsepower and 260 pound-feet of torque. That's not much for pulling 13,916 pounds, so it's assisted by two Remy 410HVH HT electric motors each capable of adding 268 continuous hp and 369 peak hp, along with 844 lb-ft of continuous torque or 1,221 ft-lbs at peak. They're only limited by the 14.2 kWh lithium-ion battery rated at 65 kW of continuous power and 180 kW of peak power, but still, TARDEC says the ULV can do 21 miles on electric power and on the flats has a combined range of 337 miles at 35 mph.