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Subaru recalling 72k EyeSight-equipped sedans and CUVs

Despite critical acclaim, the Subaru EyeSight system is in a bit of trouble today. Some 72,000 cars and crossovers equipped with the comprehensive active safety suite are being recalled. Affected vehicles include the 2015 and 2016 model year Legacy sedans built from March 10, 2014 to April 16, 2015, Outback crossovers built between February 24, 2014 and April 16, 2015, XV Crosstrek CUVs built from October 16, 2014 to April 15, 2015. Also included are EyeSight-equipped 2016 WRX sedans built after March 23, 2015. The problem rests with the EyeSight system's pre-collision braking system, or perhaps more accurately, the switch that activates the brake lights. According to the bulletin from the National Highway Traffic Safety Administration, should that switch fail, not only will the brake lights not turn on, the automatic braking system won't work either. Subaru is in the process of notifying owners, who will need to report to dealers to have the system reprogrammed. Scroll down for the official notification from NHTSA. Related Video: Report Receipt Date: JUN 12, 2015 NHTSA Campaign Number: 15V366000 Component(s): EXTERIOR LIGHTING , FORWARD COLLISION AVOIDANCE Potential Number of Units Affected: 72,000 Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2015 Legacy vehicles manufactured March 10, 2014, to April 16, 2015, Outback vehicles manufactured February 24, 2014, to April 16, 2015, Impreza vehicles manufactured September 9, 2014, to April 14, 2015, XV Crosstrek vehicles manufactured October 16, 2014, to April 15, 2015, and 2016 WRX vehicles manufactured March 23, 2015, and equipped with the Eyesight Driver Assist System. If the switch that activates the brake lights fails, the automatic pre-collision braking component of the driver assist system will not function. CONSEQUENCE: If the automatic pre-collision braking system does not function as intended, the vehicle will not react to an obstacle in its path, increasing the risk of a crash. REMEDY: Subaru will notify owners, and dealers will reprogram the driver assist system, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Subaru customer service at 1-800-782-2783. Subaru's number for this recall is WQS-54. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Should Subaru have a premium brand?

A lot of people love Subarus, and that audience is only getting bigger. Subaru sold 647,956 vehicles in the U.S. in 2017, up from 615,132 units in 2016; 513,693 in 2012; and 187,699 in 2008. You get the idea. It's a relatively small brand, but a growing one. It's also one of the top brands in terms of customer loyalty, and in terms of conquest sales. From Q2 2015 to Q2 2016, Subaru gained 3.5 customers from other brands for every customer it lost. Recently, Riley, a listener to the Autoblog Podcast, wrote in and asked why Subaru doesn't have a luxury brand. Reading the email, neurons began firing immediately, and a whole bunch of new thoughts rushed in at once, mingling with old data in my brain. Indeed, why doesn't Subaru have its own luxury brand? My initial conclusion was that it just didn't make sense for the brand. It's too small of a company to warrant another brand. The higher-end offerings — namely top-trim Ascents — are probably the ceiling at the moment. If those can sell consistently, then maybe it would be time to toy with luxury-leaning models the way Hyundai did before spinning off Genesis (and perhaps adopt a wait-and-see attitude with regard to that potential competitor.) A luxury brand might dilute the value of Subaru's mainstream offerings, giving it the look of a budget brand, but luxury models within the brand could do the opposite. ... Unless ... What if Subaru's luxury brand was all electrified? Subaru is a company that is genuinely concerned with sustainability and environmental issues. Famously, its factories are zero-landfill facilities, and the company takes part in a multitude of environmental initiatives both on its own and with various partners. This mirrors the values of a large part of Subaru's customer base, who have earned a reputation as outdoor adventurers who love nature — and dogs. It's no surprise to see Subaru overrepresented on the roads of Denver, Portland, Ore., and Burlington, Vt. Subaru doesn't offer any plug-in models yet, but they're in the works. As of now, we can expect them to be based on current nameplates. What if Subaru gave its upcoming Crosstrek PHEV the luxury treatment and a new brand name ("Pleiades" would be the easy grab). Sure, Subaru retains customers really well already, but what happens when people outgrow Subaru? At least they have the option of the Ascent, but I'm interested to see how many Subaru owners move on to luxury brands (I'm in the process of finding those answers).

Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV