Auto blog

Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute

Subaru Levorg 'prototype' revealed, looking pretty production-ready

The next-generation Subaru Levorg, better known as the WRX wagon the company has so far refused to give the U.S., has been revealed at the Tokyo Motor Show. It's technically called a "prototype," but it's clear that this is basically the production model. In fact, Subaru says production for it begins in the second half of next year. Many enthusiasts pine for the Levorg because it is a high-performance wagon that we don't get, but even if you don't care, there is reason to pay attention to this car. As the current version is basically a WRX, this is giving us our first look at the next generation of that car. Styling-wise, the new Levorg is heavily inspired by the Viziv Performance and Viziv Tourer concepts. It has a wide hexagonal grille with boomerang-shaped headlights surrounding it. The wheel arches have a strong trapezoidal shape, and there are sharp creases throughout. The overall profile of the car is still very similar to the current Levorg and WRX. Subaru has been light on the details for the rest of the car. The base engine will no longer be a turbocharged 1.6-liter, but rather a turbocharged 1.8-liter. While not announced, we wouldn't be surprised if it gets an upgraded turbocharged 2.0-liter engine, which will probably be shared with the WRX. All Levorgs will likely continue to only have a CVT. Subaru also mentions that it will have an updated version of EyeSight with stereo cameras, four radar sensors and high-resolution mapping that will reduce cruise control speeds for curves, and allow for hands-free gridlock driving. We wouldn't expect the Levorg to come to America, but the updated EyeSight is probably a shoo-in for future models.