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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.

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

2019 Subaru Ascent First Drive Review | A three-row do-over

McMINNVILLE, Ore. — The brand-new 2019 Subaru Ascent could very well be called the Mulligan. You may have heard the term used by amateur golfers as a sort of do-over for an egregiously bad first shot. But in the case of the Ascent, Subaru's largest-ever vehicle, it means that the Japanese automaker gets one more chance to build a successful three-row crossover for America. Instead of trying to forget the unloved and slow-selling Tribeca, we get the sense that Subaru wants to keep that massive failure at the top of its collective mind. And we also got the sense that Subaru's engineers and product planners are confident that this time, they've hit a perfect drive off the tee — if not at Pebble Beach, then at least at one of the thousands of reasonably priced golf courses dotting the landscape of suburban America. All the pieces of the crossover puzzle are in place: seven- and eight-passenger seating options, a sizable cargo area, standard all-wheel drive, and class-appropriate fuel mileage estimates. But, this being a Subaru, the manner with which the Ascent hits its targets varies a great deal from many of its competitors. In place of a naturally-aspirated V6, as found in the Honda Pilot or Toyota Highlander, is a turbocharged four-cylinder. And instead of sleek styling meant to attract eyeballs at the expense of usability, the Ascent is boxy, upright, and, well, kinda boring. In person, the Ascent looks like an Outback-shaped balloon that's been blown up a bit too much. An oversize grille is flanked by big headlights at the top of the fascia and faux air intakes molded from matte black plastic at the bottom. It's bland, sure, but it's also not at all surprising that Subaru would err on the side of inoffensive after the design tragedy that was the face of the original B9 Tribeca. And while it definitely shares a strong family resemblance to the Outback, it's sufficiently different enough that buyers aren't likely to confuse the two on the showroom floor. There are some interesting creases and bends in the Ascent's bodysides that add visual interest to what would otherwise be big, flat, sheetmetal stampings. And we have to commend Subaru for its restrained use of plastic underbody cladding, especially since the original Outback helped popularize that trend in the mid-1990s. There's a reasonable glass-to-metal ratio that helps the interior cabin feel airy and bright. Getting into the Ascent's third row is made easier by a large, squared off rear door.