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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

Subaru will cap sales, introduce US-only SUV and PHEV

With Subaru's meteoric growth over the past few years, it seems like the company would double down on the success and expand. However, the Japanese brand has announced that it will take the opposite approach. Rather than continually increasing global deliveries, the automaker will instead cap annual volume to between 1.03 million and 1.1 million units, according to Automotive News. While the strategy will keep Subaru's niche status, the brand's lineup certainly won't stagnate. After abundant rumors, a US-only, seven-seat crossover will eventually be assembled in Indiana, and Impreza production will reportedly move there in 2016. In addition, the company will launch a plug-in hybrid around 2018, but it'll only be sold where necessary to meet zero-emissions requirements. While the Japanese brand is widely known for crossovers and wagons, Subaru isn't forgetting its performance fans, either. Fuji Heavy Industries President Yasuyuki Yoshinaga confirmed yet again that a second-gen BRZ is under development. "We have already agreed with Toyota we will do a full model change. We have not decided when it will be introduced," he said to Automotive News. Subaru has been considering whether to grow for years, but the planning eventually favored maximizing the current factories. For example, Subaru decided not to build a plant in China but has chosen to boost capacity at the line in Lafayette, IN. Yoshinaga sees the strategy as a way to maintain the brand's soul. "Many companies try to be bigger or sell more vehicles. If Subaru does the same thing, we will lose our characteristics," he said to Automotive News. Related Video:

Subaru launches production of Ascent crossover in Indiana

Subaru began production Monday of the new Ascent, its much-anticipated three-row crossover, at its plant in Lafayette, Ind. It's set to arrive at dealers in June as a 2019 model and will start at $32,970, including shipping. The Ascent joins the Impreza, Legacy and Outback as vehicles built at the plant. It'll compete with three-row utility vehicles like the Honda Pilot, Toyota Highlander, Chevrolet Traverse and Volkswagen Atlas. (Read our comparison of the Ascent to the former two here.) Subaru built around 364,000 vehicles at the Indiana plant last year and expects the Ascent to nudge that up to around 400,000 vehicles a year. The automaker spent $140 million and added 1,200 jobs at Lafayette to support the Ascent. The company in late 2016 shifted production of the Impreza sedan and hatchback to the factory, its lone manufacturing site outside of Japan, to free up room at its plant in Gunma Prefecture for the hot-selling Crosstrek, which has been singlehandedly lifting Subaru's U.S. sales lately. A Subaru spokesman told Autoblog recently that the company hopes to sell 60,000 Ascents in the first year and had already booked more than 4,000 sold orders on the vehicle from customers who hadn't seen or driven it. The Ascent will come in either seven- or eight-seat configurations, is offered in all-wheel-drive and is based on a modified version of the same Subaru Global Platform that underpins the Impreza. It's powered by an all-new 2.4-liter turbocharged boxer four-cylinder that makes 260 horsepower and 277 pound-feet of torque. It fills a slot formerly occupied by the Tribeca, Subaru's last three-row vehicle, which was discontinued in 2014. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.