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Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries

Subaru pairs with Liberty Mutual for built-in driving monitor app

A new app for Subaru's Starlink infotainment will give owners easy access to Liberty Mutual's RightTrack usage-based insurance program later in the year, and those that take part will be able to save up to 30 percent off their bill. Users will also get nearly realtime feedback about their driving that could make them safer behind the wheel. "RightTrack is designed to benefit drivers," Jeff Wright, vice president of usage-based insurance at Liberty Mutual, said to Autoblog. The program monitors a participating driver's behavior and looks for factors like hard acceleration or deceleration, the number of miles driven, and a journey's time of day. Users then receive a report after a trip on their smartphone or the infotainment screen about these events behind the wheel. Everyone gets a five-percent discount just for signing up for the usage-based insurance, but after 90 days the safest drivers can get the maximum discount. Liberty Mutual also doesn't increase RightTrack client's insurance rates. "This partnership combines Liberty Mutual's extensive experience and reach in usage-based insurance with Subaru and Clarion's cutting-edge connected car technology to bring RightTrack savings to consumers in new ways," Hamid Mirza, auto product manager at Liberty Mutual Insurance, said in the announcement. A 2015 study indicated that 27 percent of older drivers had privacy concerns about usage-based insurance programs, but younger people had a growing willingness to try them. The industry says that showing clients how they drive can make them safer because folks realize what they're doing wrong. Plus, many people are attracted to the potential monthly savings. The RightTrack app should be available in late spring on any Subaru with the Starlink infotainment system, company spokesman Anthony Landamia told Autoblog. Liberty Mutual plans eventually to update the software to support other helpful features like severe weather alerts, accident scene assistance, and roadside assistance. Liberty Mutual Insurance and Subaru Introduce New Technology to Promote Safe Driving and Savings on Auto Insurance RightTrack® in-vehicle app powered by Clarion Smart Access™ features new innovation in usage-based insurance for SUBARU STARLINK™ Cloud app suite BOSTON – January 4, 2016 – From commuting to work to shuttling the kids, how safe of a driver are you?

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute