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Subaru to drop industrial products, focus on making cars

Subaru, the company formerly known as Fuji Heavy Industries, said Monday it is ceasing production of its industrial products after more than 60 years in order to focus on its core automotive business. The change was effective Sept. 30. "By concentrating management resources on Subaru's core automotive business, the company will further reinforce its business structure in the aim of substantially enhancing the Subaru brand and achieving even greater sustainable growth," the company said in a statement. The move appears to mark the culmination of a steady retrenchment from its industrial business. Fuji Heavy Industries Ltd. last year announced it was changing its name to Subaru Corp. in order to strengthen the brand and focus on its core automotive and aerospace business. It also moved to integrate its Industrial Products Company within Subaru's automotive business effective Oct. 1, 2016. Subaru is a Japanese name for the Pleiades star cluster, and it symbolizes the six companies that merged to form Fuji Heavy Industries in 1953. Subaru's aerospace division is a contractor for the Japan Defense Agency. The automaker's industrial products business began in 1951 when its former Omiya Fuji Industries Co. Ltd. began production of the 540 cc M6 engine. Subaru says its Industrial Products Co. Ltd. affiliate will continue to handle after-sales service of Subaru-built generators, pumps and engines used in construction, agriculture and industrial equipment. The company also says it will cease manufacturing engines for installation in other vehicles as supply contracts expire. Meanwhile, Subaru is busy reorganizing its plant in Lafayette, Ind., to begin production of the Ascent, a three-row, eight-passenger crossover based on its Viziv-7 concept that debuted late last year. Related Video:

2015 Subaru WRX

Every time I drive a Subaru WRX, I wish one of my parents had taken some weird, top-secret spy job that would have forced us to relocate to Finland when I was a kid. I could have learned the art of rally-style car control as a young lad, and in my adult life, sought out a dangerous/rewarding/awesome career as a professional WRC driver.
Never was that more clear than on the launch program for the new 2015 WRX, where Subaru pointed us down a long, somewhat treacherous stretch of road in the tree-lined mountains of northern California. Quick elevation changes were met with blind turns and washed-out shoulders, not to mention rogue bits of snow, ice and gravel that lined the apexes of nearly every turn. Here, I couldn't stop grinning, my co-driver and I switching between second and third gears, with precise steering inputs and judicious braking keeping us safely on the road and not plummeting nose-first into the trees. And the WRX simply devoured each inch of pavement with a ferocious poise that made me remember why I have loved this car so darn much.
But this sort of 100 Acre Wood perfection isn't the only way to experience Subaru's darling WRX. After a long stint of driving back down the California coast on Highway 1, I realized that Subaru's line about this being the best-driving WRX yet wasn't just a bunch of PR mumbo-jumbo. Of course, it isn't without a few compromises...

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.