2015 Subaru Forester 2.5i Premium on 2040-cars

Auto blog

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."

Subaru XV concept: Just more wishful thinking?

Subaru has long been criticized as being rather weak-kneed when it comes to styling. That's not entirely true. In recent years they have displayed some really attractive-to-stunning concepts. The last-generation Impreza concept was very attractive, as was the most recent Legacy concept. The WRX concept shown a couple of years ago was a visual knockout, and the same can be said for the most recent Impreza concepts—as well as this new XV (Crosstrek) concept. The problem has been much of the visual excitement of those concepts got lost in the translation from concept to production. So we know that Subaru has great design talent; the concepts have proven that. The problem, as I see it, is those in a position to approve design for production don't seem to understand design. Now I'm sure it's a lot more complicated than just that. It involves marketing folks, engineers, as well as those suits that call the shots at FHI. Many of those in decision-making positions just don't seem to get it. However I do have to say that each succeeding generation of Subaru has got better looking. So slowly (very slowly) they are making progress. The problem is, the competition has gotten better too — much better. Hyundai, Kia, Honda and Mazda have been hitting it out of the park when it comes to styling; all the while Subaru has been hitting solid singles along with a few walks. That said I do have a good feeling about this new XV concept. It really does look close to being production-ready. The proportions are right, there is nothing outrageous or impractical here. There are even small non-roll-down (visually distracting, but absolutely necessary) side windows, which I rarely if ever see on concepts. The proof will be in the pudding when the new Impreza debuts at the New York Auto Show later this month. Fingers crossed.

Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV