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Subaru nixes plans for US-built XV Crosstrek

Subaru is on a sales tear, with numbers up 21 percent through the end of November compared to last year. It's been investing in its Indiana factory, and having ended its contract to build the Toyota Camry there, the 400,000-unit capacity was once seen as more than Subaru needs. At some point Subaru had plans to build the XV Crosstrek here in the US, but Reuters reports that the company has changed its mind and will build the little crossover Scooby in Japan, in the same Gunma Prefecture factory where the Impreza, BRZ and Levorg are built. The report cites "the relatively high sales price," the weakening yen versus the dollar and capacity constraints at the Indiana facility. For a planned production run of 65,000 Crosstrek units annually, the new math – especially the yen valuation, which has declined against the dollar to a rate not seen since 2007 – makes Japanese production a viable option. Subaru isn't the only manufacturer taking its toys back home, either: the Reuters report says Toyota is considering shifting some Camry production back to Nippon, while Nissan plans to do the same with the Rogue. Our guess is that if Subaru sales continue the trend they've been on for years, the assembly decision will give them more local flexibility here for addressing it. Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: ReutersImage Credit: Copyright 2014 AOL Plants/Manufacturing Subaru Crossover subaru xv crosstrek

Subaru parent company celebrates 60th birthday

Fuji Heavy Industries, parent company of Subaru, celebrated its 60th anniversary on June 15. And while the company is largely known in the automotive world for its innovative all-wheel-drive cars, its history stretches far back before the days of symmetrical all-wheel drive, World Rally Blue and gold wheels.
FHI was founded, much like Germany's BMW, as an aircraft company. It went through a series of names before settling on its current title in 1953. And while its aerial successes were never quite as famous as Mitsubishi and its Zero, FHI did fly Japan's first jet-powered trainer. The same year, 1958 to be exact, it unveiled the iconic Subaru 360 minicar. While the 360 never quite caught on in the US (at least not with the fervor of the similarly laid-out Volkswagen Beetle), the small, affordable and simple Subie had a wide-ranging appeal across the island of Japan.
The rear-drive, rear-engined 360 was eventually joined by the 1000, Subaru's first front-engine, front-wheel-drive car. More importantly, the 1000 ushered in Subaru's use of a horizontally opposed engine. The Subaru Leone, which arrived in 1971, expanded on the 1000, by offering a combination we're all familiar with nowadays - all-wheel drive with a flat-four engine.

Subaru mulling three-row utility, upscale versions of existing models

Subaru was one of few automakers whose sales actually picked up during the recent recession. But now that auto sales are back on track (and expected to hit pre-recession numbers this year), Subaru is trying to come up with new products to fill voids in its current lineup. Wards Auto had a chance to talk to Subaru's director-product manager Ken Lin, who indicated that the automaker is planning to introduce new models this year that will help it attract new buyers without alienating current ones.
The biggest void, of course, is a competitive three-row crossover, a role the Tribeca does not fill in one a very popular segment. Lin said that while there's no current plan to kill off the Tribeca, Subaru is looking at creating a larger three-row CUV with more interior space. In addition to to something big, Subaru is getting ready to bring its customers more luxury with new touring models, but does not anticipate going toe-to-toe with Mercedes-Benz or BMW.
By the end of this year, Subaru will be introducing a new hybrid model, although we don't yet know on which model it will be based. What we do seem to know is that the car will get its power from a nickel metal hydride battery rather than a more modern lithium-ion pack for the sake of simplicity. Finally, Lin mentioned a new product being brought into the sports car segment, but while the article takes this as a hint toward a possible BRZ Turbo, it could also be a reference to the next generation of the WRX and WRX STI.