2019 Subaru Ascent Touring on 2040-cars

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Subaru to drop industrial products, focus on making cars

Subaru, the company formerly known as Fuji Heavy Industries, said Monday it is ceasing production of its industrial products after more than 60 years in order to focus on its core automotive business. The change was effective Sept. 30. "By concentrating management resources on Subaru's core automotive business, the company will further reinforce its business structure in the aim of substantially enhancing the Subaru brand and achieving even greater sustainable growth," the company said in a statement. The move appears to mark the culmination of a steady retrenchment from its industrial business. Fuji Heavy Industries Ltd. last year announced it was changing its name to Subaru Corp. in order to strengthen the brand and focus on its core automotive and aerospace business. It also moved to integrate its Industrial Products Company within Subaru's automotive business effective Oct. 1, 2016. Subaru is a Japanese name for the Pleiades star cluster, and it symbolizes the six companies that merged to form Fuji Heavy Industries in 1953. Subaru's aerospace division is a contractor for the Japan Defense Agency. The automaker's industrial products business began in 1951 when its former Omiya Fuji Industries Co. Ltd. began production of the 540 cc M6 engine. Subaru says its Industrial Products Co. Ltd. affiliate will continue to handle after-sales service of Subaru-built generators, pumps and engines used in construction, agriculture and industrial equipment. The company also says it will cease manufacturing engines for installation in other vehicles as supply contracts expire. Meanwhile, Subaru is busy reorganizing its plant in Lafayette, Ind., to begin production of the Ascent, a three-row, eight-passenger crossover based on its Viziv-7 concept that debuted late last year. Related Video:

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:

2014 Subaru Forester XT

Power Doesn't Come Cheap
When Subaru first offered a turbocharged Forester XT model to US customers for the 2004 model year, the shoe-shaped second-gen model fell into a ready-made competitive set of small, V6-powered crossovers and SUVs. The XT might have been more of a raucous shopping-trip companion than, say, a Ford Escape V6, but the basics of the cars offered a clear differentiation from the naturally aspirated, four-cylinder models found just a bit downmarket. Here in 2013, the V6 breed of crossover in this size class is all but extinct, and turbocharged four-cylinders with the power to compete with the XT are not thick on the ground.
In many ways, the comparative analysis gets most interesting when you start looking around for CUVs to match up with the all-boxes-ticked Forester XT Touring that we had as a tester for a recent week. The top of the line Touring trim means that the Forester comes with features like 10-way power seats, leather, navigation, a Harmon Kardon sound system with HD radio, Bluetooth and more. In fact, our Forester also had the only option package available on the XT Touring; one that included keyless access, HID headlights and Subaru's EyeSight system (adaptive cruise, lane departure warning and pre-collision braking).