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Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Subaru BRZ gets updates, limited-edition Series.Blue model for 2015

The popular complaint about the Subaru BRZ is that its 200-horsepower, 2.0-liter-boxer engine is underpowered compared to other, modern sports coupes. Subaru isn't doing anything to address that for the 2015 model year BRZ, but the company does have some aesthetic upgrades ready for its rear-wheel-drive two-door and a limited-edition version with a more aggressive body.
The big news for the 2015 BRZ is the Series.Blue Special Edition (pictured above) that is limited to 1,000 units for the US with 500 of them in the brand's famous WR Blue Pearl and the other 500 in Crystal White Pearl. Mechanically, the special models are unchanged with the 2.0-liter boxer engine and a six-speed manual, but they wear an exclusive, black, STI-branded body kit that includes a new lower-lip front spoiler, rear spoiler, side sills and underbody panels. Subaru claims the whole setup increases front downforce and decreases the car's coefficient of drag from 0.28 to 0.27. To match the new kit, the limited-edition cars feature black, 17-inch wheels from STI with contrasting red brake calipers hiding behind them. The interior sees nearly as many changes as the outside with black and blue leather sport seats with blue stitching, and a similar motif for the steering wheel, shift boot, parking brake and kneepads. The illuminated engine start button gets an STI logo, as well. The Series.Blue arrives at dealers in July for $30,285, after the $795 destination charge.
The rest of the BRZ lineup isn't left out and has some minor upgrades of its own, with revised damper settings, stainless steel exhaust tips, a body-color shark fin antenna and a simulated carbon fiber dashboard panel - similar to the upgrades found on the 2015 Scion FR-S. Two new colors are available - Ice Silver Metallic and Crystal White Pearl. Prices are up $100 across the board for 2015. After destination, the Premium trim is $26,490; the Limited is $28,490; the Limited with an automatic transmission is $29,590. The 2015 models hit dealers this summer. Scroll down to read the full announcement.