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Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru

Subaru launches STI-tuned Forester tS in Japan

Subaru Tecnica International, better known by its initials, STI, has finally unveiled its work at tuning the Forester into a higher performance machine. Unfortunately while tweaks to the suspension and styling are plentiful, it's not clear how much acceleration is going to improve from just a few minor upgrades to the powertrain. All of the tS models come with a turbocharged, 2.0-liter four-cylinder and continuously variable transmission. STI fits new software to control the engine and gearbox, plus a cooler for the CVT, but Subaru doesn't say what effect this has on overall performance. The Sport Sharp driving mode has also been also retuned in the SI-Drive system. However, the Forester tS should definitely be a better handler with a 0.6-inch (15-mm) drop for the suspension and STI parts for the strut tower brace and rear subframe support. The upgrade to forged 19-inch wheels from BBS and commensurately larger tires should help the CUV stick to the road better, too, and Brembo ventilated brake discs front and rear can bring things to a halt. On the outside, the Forester tS wears some subtle updates with a cherry-red pinstripe running around the front grille and rear bumper. STI also fits a new front and rear spoiler, plus black mirrors provide a little contrast on each side. Inside, there are some new seats up front with a mix of black leather and Ultrasuede with red stitching and matching door panels. We were hoping Subaru might let STI go wild on the Forester to create a higher-riding take on the WRX STI, but that didn't happen. The tS goes on sale in Japan on November 25 and is limited to just 300 units. Prices ring up at 4,027,778 yen before the country's consumption tax ($34,170). Scroll down for all the details about this hotted-up crossover. STI Releases Subaru "Forester tS" in Japan Nov 25,2014 Tokyo, November 25, 2014 - Subaru Tecnica International Inc. (STI)*1 today announced the release of the Subaru "Forester tS", which goes on sale on November 25 through Subaru dealerships in Japan. With a development concept focused on creating an on-road vehicle which has a rugged styling, responsive handling performance and quality feel, the Forester tS offers an enhanced version of the driving performance the Forester provides as an SUV, delivering the ultimate in driving enjoyment and pleasure of ownership. The Forester tS benefits from its own exclusive tuning the "S# (Sport Sharp) mode" for "SI-DRIVE".

Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.