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Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.

Kayaba, Sumitomo to pay millions for price-fixing in US

Kayaba Industry Co, which does business in the US as suspension parts maker KYB, and Sumitomo Electric Industries are facing payments in the millions to settle price-fixing cases about the components that they make. As part of the Department of Justice's ongoing crackdown of price fixing in the auto industry, KYB agreed to pay $62 million and pleaded guilty to conspiracy to set the cost of shock absorbers from the mid '90s through 2012. The company allegedly worked with co-conspirators to keep the cost of the parts high, and those components then made it into vehicles from Honda, Kawasaki, Nissan, Subaru, Suzuki, and Toyota. "Any collusive agreement among competitors to restrict price competition undercuts our free enterprise system and violates the law," said Carter M. Stewart, US Attorney of the Southern District of Ohio, in the DoJ's announcement. Over the past few years, the DoJ has brought cases against 37 parts suppliers and 55 executives, leading to over $2.6 billion in fines. The investigations haven't always been so successful – some of the Japanese execs fled from the US to avoid prosecution. Critics allege that price fixing is simply how business is done. According to Automotive News, Sumitomo Electric Industries is also facing a $50 million settlement in a civil lawsuit that's related to price fixing of parts like wiring harnesses and heater control panels. The plaintiffs include owners and dealers that purchased vehicles with these parts. The company asserts that the violations are from before 2010, and it now has different process in place to avoid further violations. KYB Agrees to Plead Guilty and Pay $62 Million Criminal Fine for Fixing Price of Shock Absorbers Kayaba Industry Co. Ltd., dba KYB Corporation (KYB) has agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to U.S. consumers. According to charges filed today, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation and Toyota Motor Company, including their subsidiaries in the United States.

Subaru previews Viziv Performance Concept and 2 tuned STIs for Tokyo

Subaru will be rolling deep at the 2017 Tokyo Motor Show next month. The Japanese automaker has announced a number of different models that it will bring to the show, including three concepts, and limited editions of two different STI models. At the top of the list, teased above, is the Subaru Viziv Performance Concept. This car sounds like it could be a sneak preview of a next-generation WRX, as Subaru describes it as a sport sedan that combines "enjoyment and peace of mind." The very nature of the model encourages active engagement, but Viziv Performance uses Subaru's EyeSight tech to provide advanced driver assistance. The teaser images don't give us much else to go on, but we'll keep our ear to the ground in case Subaru drops any more information ahead of the show on Oct. 25. View 2 Photos Also coming to Tokyo will be to Japan-only limited edition versions of two STI models. The first is the Subaru S208, based on the WRX STI. A successor to the S207, the S208 is limited to just 450 units. It's quicker and more powerful than the S207, and features a carbon fiber roof to help lower the center of gravity. Engine output isn't given, but the S207 made 323 horsepower and 318 pound-feet of torque. The S208 also has an upgraded suspension and exclusive interior and exterior styling upgrades. View 5 Photos The other special edition is the Subaru BRZ STI Sport. It doesn't get more power, but Subaru did work to improve ride and handling. The BRZ STI Sport has a stiffer body and a specially tuned suspension to improve dynamic performance. It also gets its own interior and exterior touches, and a special Cool Grey Khaki paint color. Like the S208, it will be available only through lottery, but will be even more exclusive, at just 100 units. View 4 Photos Subaru is bringing two yellow concepts to the show, the XV Fun Adventure Concept and the Impreza Future Sport Concept. The XV Fun Adventure gets off-road tires and updated body cladding. The Impreza Future Sport gets revised front and rear bumpers, a low center of gravity, and a central exhaust. Last, and probably least, Subaru will display the Outback Limited Smart Edition, with a few design touches like an exclusive grille and wheels, microfiber seats, plus navigation and a Harman/Kardon sound system. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.