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Subaru to drop industrial products, focus on making cars

Subaru, the company formerly known as Fuji Heavy Industries, said Monday it is ceasing production of its industrial products after more than 60 years in order to focus on its core automotive business. The change was effective Sept. 30. "By concentrating management resources on Subaru's core automotive business, the company will further reinforce its business structure in the aim of substantially enhancing the Subaru brand and achieving even greater sustainable growth," the company said in a statement. The move appears to mark the culmination of a steady retrenchment from its industrial business. Fuji Heavy Industries Ltd. last year announced it was changing its name to Subaru Corp. in order to strengthen the brand and focus on its core automotive and aerospace business. It also moved to integrate its Industrial Products Company within Subaru's automotive business effective Oct. 1, 2016. Subaru is a Japanese name for the Pleiades star cluster, and it symbolizes the six companies that merged to form Fuji Heavy Industries in 1953. Subaru's aerospace division is a contractor for the Japan Defense Agency. The automaker's industrial products business began in 1951 when its former Omiya Fuji Industries Co. Ltd. began production of the 540 cc M6 engine. Subaru says its Industrial Products Co. Ltd. affiliate will continue to handle after-sales service of Subaru-built generators, pumps and engines used in construction, agriculture and industrial equipment. The company also says it will cease manufacturing engines for installation in other vehicles as supply contracts expire. Meanwhile, Subaru is busy reorganizing its plant in Lafayette, Ind., to begin production of the Ascent, a three-row, eight-passenger crossover based on its Viziv-7 concept that debuted late last year. Related Video:

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.

2018 Crosstrek propels Subaru to best-ever April sales

April was a dismal month for most automakers, with sales declines that ranged from 4.7 percent for Ford to a whopping 28 percent for Nissan. So here comes mighty little Subaru, which claimed the month as the best April in its history. The gain is entirely attributable to the Crosstrek, which is all-new for 2018. Sales of the compact, raised crossover climbed almost 70 percent for the month to 12,266. Year to date, Subaru has sold 45,728 Crosstreks, an increase of 66.6 percent. That helped push Subaru's total U.S. sales to 53,170 in April and 202,873 for the first four months of 2018, increases of 1.5 percent and 3.2 percent, respectively. It also marks 77 consecutive months of yearly month-over-month growth for Subaru. All other models saw declining sales for April, led by the Impreza, which was down 27.4 percent. "Our customers' interest in the Crosstrek continues to increase every month," Jeff Walters, senior vice president of sales, said in a statement. "We're now looking forward to the start of production later this month of the all-new Subaru Ascent at our plant in Indiana." The 2018 version of the Crosstrek went on sale last August featuring a new 2.0-liter flat-four engine, stiff new chassis, more ground clearance and the EyeSight suite of safety technologies, among other changes. But the Crosstrek has been on a hot streak for a few years now, with sales up 15.1 percent in 2017 and 6.7 percent in 2016. The Crosstrek is Subaru's third top-selling model behind the Forester and Outback. Subaru spokesman Dominick Infante says the company did not see the sales trail-off last year that's typical of a vehicle at the end of its lifecycle with the Crosstrek. "It was essentially a straight line going up, and it was limited by production," he said. The difference, he said, is that Subaru is now able to make more of them. The company last year shifted production of the Impreza to its plant in Lafayette, Ind., to free up capacity to build more Crosstreks at its plant in Gunma Prefecture, Japan, which underwent a major retooling. The Indiana plant now builds the Impreza, Legacy and Outback after the expiration of a contract in 2016 with Toyota to build 100,000 Camry sedans annually. Production of the new three-row Ascent crossover will start in Indiana in May, following a $140 million expansion at the plant, according to Automotive News. The vehicle is due in showrooms in June, Infante said, with sales of 60,000 expected in the first year.