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Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru

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.

Just add power | 2017 Subaru Impreza First Drive

The phrase "all new" gets bandied about way more than it should in the automotive world. Depending on how lenient an automaker's marketing department is feeling at the time, refreshed fascias and a reshuffling of trim levels might earn a tired vehicle the all-new appellation. That's not what Subaru has done with its reborn Impreza compact. Everything from its wheels to its windows has been completely redesigned for 2017. With one glaring exception, the 2017 Subaru Impreza has benefited immensely from its rebirth. The chassis is stiffer, the steering is better, and the interior is larger than before. Like on most Subarus, standard all-wheel drive remains a key selling point. The only thing that's missing is more power. Subaru has gotten guff over the years for its exterior design, with vehicles being called everything from ugly (Baja) to odd (B9 Tribeca). The 2017 Impreza doesn't fit those descriptions. There's just enough surfacing pressed into its bodysides to attract the eye, and the burly flared-shoulder fenders add a muscular stance. Dead-on, the Impreza's face is a bit too nondescript – if it didn't wear a Subaru badge, you'd be forgiven for mistaking it for a Honda or Toyota – but it's not unattractive. The bug eyes of Imprezas past are now nothing more than a historical footnote. The Impreza is again available as either a sedan or, for $500 more, a hatchback. The trunk of the sedan measures 12.3 cubic feet. Obviously, the hatch offers more utility than the sedan, with 20.8 cubic feet of space behind the rear seats and a maximum of 55.3 cubes with the seats folded. That's more than the VW Golf's 52.7 and way more than the new Honda Civic hatchback's maximum of 46.2. The first thing we noticed from the driver's seat is how easy it is to see out of the 2017 Impreza. Visibility is excellent in every direction, and all that glass means the cabin feels light and airy. Large, easy-to-read speedometer and tachometer gauges sit front and center, but the rest of the information needed for the task of driving is spread across three different LCD screens. The first sits between the two gauges, and the second is atop the center stack. The third screen is the largest, measuring 6.5 inches on base 2.0i models and 8.0 inches in Sport and Limited trims.