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2015 Subaru Legacy

Subaru has a problem on its six-starred hands, but you wouldn't know it at first glance. Sales are up; in fact, the Japanese automaker has recorded 28-straight months of increased sales in the United States, leading to the best first-quarter Subaru has ever recorded, and 2014 will almost assuredly be the seventh straight year it has posted improvements. So, what's wrong? The answer is simple, though clearly complicated to resolve. Sedans - specifically, midsize examples - have proven a tough nut for Subaru to crack.
The vast majority of those impressive sales statistics have come from just a few models, namely the Forester, Outback and XV Crosstrek. The Impreza continues to sell at a respectable pace, but it's telling that the XV, after just three years on the market, is already Subaru's third-best-selling nameplate, outpacing the aforementioned Impreza (on which it's based), its high-performance WRX sibling and the Legacy, which is now entering its sixth generation, having been first introduced way back in 1989. It's that last model we're examining today.
Despite the fact that the Legacy plays in a hotly contested market segment that includes such stalwart sales champions as the Toyota Camry, Honda Accord, Ford Fusion and Nissan Altima, Subaru's competitor registers as a barely visible blip on the radars of new-car buyers. Graphically illustrated another way, Toyota sells 17 Camry sedans for every new Legacy that Subaru moves.

Subaru Levorg STI Sport should get us closer to the future WRX

At the Tokyo Motor Show, Subaru showed a "prototype" of the next-generation Levorg, itself a Japanese-market wagon derivative of the Subaru WRX sedan. While it gave us a good idea of what to expect from the next WRX, the Levorg STI Sport that will be shown at Tokyo Auto Salon in January should give us an even better look at the hot Subaru we'll get. This is based on the fact that among current Levorg trims, the STI Sport has a front bumper fascia that's more aggressive and that echoes the design of the WRX, whereas the standard trim is more mellow. So far, Subaru has only released a teaser video of the sportier Levorg. It shows STI badging on the back of the car and on the exhaust tips. There's also a glimpse of the tachometer that shows a redline of just over 6,000 rpm. Since that's lower than the WRX's turbo 2.0-liter engine's 6,500-rpm redline, this is probably the new 1.8-liter turbocharged engine Subaru announced will replace the current base turbo 1.6. It will probably make at least 170 horsepower to match the outgoing model. Based on the current STI Sport engine offerings, this should be the base engine, while the WRX's turbocharged FA20 will be an option. The full reveal of the Levorg STI Sport will come on January 10. Expect further details on mechanical changes as well, which will hopefully include information on a more powerful engine that could appear in the WRX. We wouldn't be surprised if it ended up using a slightly updated version of the current WRX's 2.0-liter FA20 engine, since even the WRX STI is expected to get a more powerful - probably over 300 horsepower - version of that same engine.

Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.