2007 Subaru Impreza 2.5i Wagon 4-door 2.5l on 2040-cars

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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

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

Subaru turns a WRX STI into a bobsled and (barely) makes it work

When asked how confident he felt of a successful full run down the St. Moritz-Celerina Olympic Bobrun in his specially prepared Subaru WRX STI, professional rally and stunt driver Mark Higgins responded, "50/50." In reality, he was probably being generous. It wasn't supposed to be so death-defying. In fact, Subaru's original plan was to have Higgins make several runs down the icy slope, some with journalists in the passenger seat. We were among those who traveled all the way to Switzerland for the chance to experience an automotive bobsled ride. One look at the run's famous Horseshoe Corner was all it took for us to second-guess that idea. Well, that and our pesky sense of self preservation. Higgins, though, is one of those rare humans to have been born without that fear-of-death gene. Not only is the Manx driver a professional stuntman – his resume includes sequences for Daniel Craig's James Bond – he also won the British Rally Championship three times and is the four-wheeled record holder at the famed Isle of Man Snaefell Mountain Course. So, when Higgins says some sort of vehicular stunt has only half a chance at success, well, let's just say that most mortals would say something more akin to "a snowball's chance in hell." On the topic of snow and balls, it's worth noting that the timing of Subaru's bobsled run wasn't set by choice. The Olympic Bobrun hosts regular events every winter through late February or early March. Since the track at St. Moritz is the only run in the world without an artificial cooling system, warm weather means no sledding. Combine those two facts and you end up with a very narrow window in which Subaru could go about making the modified track and a WRX STI actually fit together. Enter the boffins at Prodrive. The British engineering firm first started modifying vehicles for racing in 1984. By 1990, Prodrive was focused on turning turbocharged Imprezas into championship winners for the likes of Colin McRae, Richard Burns, and Petter Solberg. So it comes as little surprise that Subaru turned back to Prodrive to figure out how to modify a 2015 WRX STI in a way that would make it survive the pounding it would sustain on a bob run. For the record, this isn't just any 2015 WRX STI. It's actually the same car Higgins used in 2014 to set a lap record at the Isle of Man.