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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.

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.

Subaru teases all-new Legacy ahead of Chicago debut

Following the debut of the Legacy Concept at the 2013 Los Angeles Auto Show, it appears Subaru is now ready to show us the real thing. The Japanese automaker has just confirmed that a production-spec Legacy sedan will officially bow at next week's Chicago Auto Show.
All we have to work with right now is the teaser image you see above, as well as some general overview-type stuff from Subaru in regards to its new model. According to the company's press blast, the next Legacy "is a midsize sports sedan which offers enhanced driveability and functionality while achieving a design required for a flagship model with a quality feel." In other words, it's a brand-new Legacy.
The Legacy Concept was a decidedly attractive thing, combining coupe-like styling elements and a new design that sort of reminds us of a Buick Regal GS. Of course, Subaru has a storied history of creating excellent-looking concept cars, only to later unveil very watered-down production versions, so we fully expect its new midsize sedan to be quite a bit more boring than the show car we saw in LA. Let's hope we're wrong.