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Subaru suppliers rely on gray market labor

The Subaru Forester is currently the Japanese brand's bestselling model in the US. A new investigation by Reuters is making some scathing allegations about how the popular model is actually made, though. The piece claims that many of Subaru's suppliers in Ota, Japan, are using low-paid foreign workers and asylum seekers to produce components that go into the CUV. The report says that these laborers are coming from places like China and Bangladesh, and they allegedly receive a pittance compared to their Japanese counterparts. Many said that they get about $6.60 an hour, but employment brokers can take a large portion of that pay. At just four suppliers Reuters estimates there are 580 foreign workers, or about 30 percent of the total workforce. The situation has turned Ota into a cultural melting pot because of the significant population of immigrant labor. The problem stems in part from Japan's tiny labor market, and the country's odd asylum system that doesn't allow some applicants to work legally. These suppliers produce many components for the Forester, including the seats, shocks, and fuel tanks. Reuters admits that the businesses have contracts with other Japanese automakers, as well, but Subaru receives the main focus of this piece, which you can read in full, here. When asked for comment about Reuters' report, Subaru of America provided Autoblog with the following statement: "Fuji Heavy Industries does not condone the exploitation of any class of worker, either in its own operations or within its supply chain. FHI expects all employees to be treated fairly, with dignity and respect and to be provided with appropriate workplace protections. The FHI CSR policy respects and adheres to the law and regulations of business as well as upholding human rights and international standards of behavior and the ethical standards of our stakeholders. Our supply chain network has been made aware of our policy and expectations."

2020 Subaru Outback gets new-and-improved roof rack

The next-generation, 2020 Subaru Outback introduced at the New York Auto Show is quite obviously an evolution of the vehicle it replaces. Actually, we wouldn't be surprised if many folks can't tell the difference between the new and previous ones on the outside. There are many improved elements, however, and one of them is the Outback's unique roof rack system that returns for a third generation. As before, the roof rails swing inward to be their own cross bars. There's therefore no need to mount and remove separate crossbars, or alternatively, keep them on the car where they'll create noise and hurt fuel economy. Considering that so many Subaru owners mount things to the roofs of their cars (bikes, kayaks, gear boxes, skis, tents, etc.), this is one of those things than can really make the Outback stand out from the hordes of compact SUVs out there, including the Forester. The fact that the Outback's roof is lower, and therefore easier to lift thing upon, certainly helps. Again, the swing-in roof rails were there before. For the 2020 Outback, Subaru added sturdy arches at the edge of the roof rail assembly. Besides looking cooler than the rather bulky old set-up, these serve as large, easily accessed tie-down points for especially large items like kayaks. It seems like a simple thing, but it can actually make a difference in the way people actually use their cars.

Should Subaru have a premium brand?

A lot of people love Subarus, and that audience is only getting bigger. Subaru sold 647,956 vehicles in the U.S. in 2017, up from 615,132 units in 2016; 513,693 in 2012; and 187,699 in 2008. You get the idea. It's a relatively small brand, but a growing one. It's also one of the top brands in terms of customer loyalty, and in terms of conquest sales. From Q2 2015 to Q2 2016, Subaru gained 3.5 customers from other brands for every customer it lost. Recently, Riley, a listener to the Autoblog Podcast, wrote in and asked why Subaru doesn't have a luxury brand. Reading the email, neurons began firing immediately, and a whole bunch of new thoughts rushed in at once, mingling with old data in my brain. Indeed, why doesn't Subaru have its own luxury brand? My initial conclusion was that it just didn't make sense for the brand. It's too small of a company to warrant another brand. The higher-end offerings — namely top-trim Ascents — are probably the ceiling at the moment. If those can sell consistently, then maybe it would be time to toy with luxury-leaning models the way Hyundai did before spinning off Genesis (and perhaps adopt a wait-and-see attitude with regard to that potential competitor.) A luxury brand might dilute the value of Subaru's mainstream offerings, giving it the look of a budget brand, but luxury models within the brand could do the opposite. ... Unless ... What if Subaru's luxury brand was all electrified? Subaru is a company that is genuinely concerned with sustainability and environmental issues. Famously, its factories are zero-landfill facilities, and the company takes part in a multitude of environmental initiatives both on its own and with various partners. This mirrors the values of a large part of Subaru's customer base, who have earned a reputation as outdoor adventurers who love nature — and dogs. It's no surprise to see Subaru overrepresented on the roads of Denver, Portland, Ore., and Burlington, Vt. Subaru doesn't offer any plug-in models yet, but they're in the works. As of now, we can expect them to be based on current nameplates. What if Subaru gave its upcoming Crosstrek PHEV the luxury treatment and a new brand name ("Pleiades" would be the easy grab). Sure, Subaru retains customers really well already, but what happens when people outgrow Subaru? At least they have the option of the Ascent, but I'm interested to see how many Subaru owners move on to luxury brands (I'm in the process of finding those answers).