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Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

Subaru Levorg: Forbidden fruit

For Subaristas, the Levorg needs no introduction. Fans of the marque have been begging Subaru of America (SOA) to bring it over here from the moment it was first introduced. First introduced in Japan a year or so ago, and now making its way across the globe, it is one delicious wagon that SOA refuses to let Americans taste. Why? Wagons don't sell in America, so they say (some Euro-brands might disagree with that). Plus they seem to think they have the wagon market pretty well covered with the Outback, Forester, and to a lesser degree, the Crosstrek. First a bit of history Unlike here in America, at least in recent years, a Legacy wagon continued to exist in other markets. At some point Subaru decided to also delete it from their global portfolio, and to replace it with the smaller, sportier and well-equipped Levorg. The thinking was that the Levorg would be more distinct from the Outback than a Legacy wagon, and would be less likely to step on the Outback's toes in terms of searching for customers; makes sense. Another point needs to be made: Subaru is selling at record levels. They just can't make them fast enough as they are constrained by lack of production capacity. That will improve soon as the next-gen Impreza will be built in their Indiana plant this fall once the Toyota Camry production moves out. So, at the moment, they don't need the Levorg to improve sales. Down the road that may be a different situation, but for now adding another model line would be tough and of little benefit. Why America needs the Levorg When Subaru introduced the current generation WRX they deleted the hatchback — which accounted for 50 percent of WRX sales. Needless to say WRX 5-door owners were outraged — and continue to be so. The Levorg wagon could be the perfect answer for these folks, as shares many parts with the WRX. In Japan it's available with a new 1.6L direct-injection turbo as well as the same 2.0L direct-injection turbo found in the WRX. Other markets, to date, only get the 1.6L engine. All Levorgs have CVTs, with the 2.0 versions getting the high-torque CVT found in the WRX CVT. The chassis setup, while a tad softer, is very close to that of the WRX. So it is definitely a car that's cut out for canyon-carving. It's also more upscale than the WRX, with an interior more akin to luxurious trim levels of the Legacy and Outback. In its defense Subaru has claimed that the budget did not allow for developing both the Levorg and a 5-door WRX.

Toyota, Lexus dominate KBB's Best Resale Value Awards

Toyota and Lexus stormed the 2014 Kelley Blue Book Best Resale Value Awards, winning a combined 18 categories including best brand and best luxury brand. This marks the third year in a row that both automakers have won the Brand and Luxury Brand resale value awards. In all, Toyota won 11 categories and Lexus won seven.
Honda made a good showing, as well, winning two segments (Accord Plug-In Hybrid and Civic Si) and putting one car on the top-10 Best Resale Value list (CR-V). Chevrolet did even better, winning two segments (with the V6 Camaro and the Corvette) and placing three cars on the top-10-overall list (again, the Camaro and Corvette, plus the Silverado 1500).
The other winners came from Jeep, Dodge, Infiniti, Subaru and Audi. To give you a clearer picture of the Toyota and Lexus domination, their 18 mentions represents more than half of the 34 awards (including the top-10-overall list).