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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

Watch Subaru WRX STI's ripping record run at Nurburgring

As expected, Subaru had a bunch of cameras rolling when they gunned for a Nurburgring lap record attempt. The car they used was a specially honed (deep breath) WRX STI Type RA NBR Special, and it proved to be good for a 6:58.9 lap around the Nordschleife, in the hands of Richie Stanaway. Now, video material of the sedan car record run has been posted on Subaru's social media pages, and it includes a separate "Behind the Scenes" video. The record car was built by Prodrive, and it consists of a 2017 WRX STI with a full roll cage, fitted with a WRC specification two-liter turbo engine that produces more than 600 horsepower thanks to its 75mm intake and 25 psi of boost. The transmission is also a WRC item, and its hydraulic paddle-shift setup together with an automated clutch enables shift times of 20-25 milliseconds. The track time is quicker than a recent privateer attempt using a 2017 Dodge Viper ACR, which squeezed the time down to 7:01,3 until a tire failure caused it to crash. Of course, the Viper was classified as a production vehicle, unlike the Subaru. Here's the Behind the Scenes footage: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Should Subaru stay niche or go mainstream? [w/poll]

Out of all the automakers doing business in the US, Subaru is the one that has carved out the most interesting niche for itself in the minds and lifestyles of buyers. Outdoorsy types, dog lovers and active families alike flock to Subaru's rugged nature and all-wheel-drive utility - and they're fiercely loyal, which is probably why Subaru has become a success story.
But Subaru is still a relatively small player in the US market, and with recent profits surging, parent company Fuji Heavy Industries is facing a dilemma: continue on with the successful niche market Subaru has carved out for itself, or attempt to go mainstream and give big players like Nissan and Toyota a run for their money. According to Carscoop, Japan Times and Bloomberg News are reporting that Fuji Heavy is beginning discussions this month to determine which direction Subaru will take.