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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 of Indiana produces its 4 millionth Subaru, but that's not all

Subaru of Indiana Automotive (SIA), the only Subaru plant outside Japan, just celebrated building its 4 millionth Subaru. On Monday, April 22, at 10:51 p.m. Eastern Daylight Time, a silver 2019 Outback rolled off the line to mark the milestone. The facility was the product of a joint venture between Subaru and Isuzu, producing about 67,000 cars per year. Devoted solely to Subarus since 2016, yearly output by the more than 5,700 factory associates hovers around 370,000 cars. Those with a head for arcane minutiae might recall that in 2013 Subaru announced having produced the 4 millionth vehicle at the plant. An Outback also celebrated that milestone, that time a 2014 model in Dark Indigo Blue. Subaru answered our question about the previous highlight by explaining, "in the past, the plant produced Isuzu vehicles (and at one point, even the Honda Passport and Toyota Camry)." The 2013 vehicle tally counted everything rolling out the doors. This week's marker counts just the Subarus. The facility also builds the Ascent, Impreza, and Legacy for the North American market. Things are going so well for the Japanese carmaker that we were also told, "While this week we're celebrating our 4 millionth Subaru vehicle (since beginning production in 1989), in early September we expect to produce our 6 millionth overall vehicle." Seems those seven sisters of the Pleiades, Subaru's constellation logo, are shining at full strength.

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.