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Miami Herald
2 hours ago
- Automotive
- Miami Herald
Subaru Is Making a Huge Bet on the Forester to Navigate Trump Tariffs
Japanese automaker Subaru is resting on its bestseller, the Forester crossover SUV, to be its north star as it navigates the rough seas caused by the Trump administration's heavy automotive tariffs. According to a new report by Nikkei Asia, Subaru hopes the new Forester SUV will help cushion the blow from steep tariffs and keep its footing in its most important market. At the company's annual shareholder meeting in Tokyo this week, Subaru President Atsushi Osaki made it clear that Subaru will stay committed to its stateside customers. "We'll overcome this by maintaining the U.S. as our main market and balancing it with Japan and Canada," Subaru President Atsushi Osaki said at the automaker's annual shareholder meeting on June 25. To say that Subaru depends on the United States auto market to survive would be an understatement. According to its figures, more than 70% of Subaru's global sales are in the United States-far more than its Japanese automaking rivals like Honda and Toyota. In fiscal 2024, Subaru sold 662,000 vehicles in the U.S., or 71% of its total global sales of 936,000. Despite this, Subaru's manufacturing situation leaves it vulnerable to Trump's tariffs. Roughly half of Subarus sold in the States are Japanese imports, which means they're now subject to the 25% tariffs imposed by the Trump administration earlier this year. Subaru estimates those tariffs could cost the company $2.5 billion if they do not work proactively, making its $2.79 billion operating profit from the 2024-2025 fiscal year useless. However, the atmosphere around the shareholder meeting suggested that Subaru would heavily rely on the Forester as a savior for the marque. The latest version of the brand's most popular SUV first went on sale in the U.S. in 2024 with a purely gasoline version, followed by a Toyota-developed hybrid model released earlier this year. Demand is already strong. According to figures from Subaru of America, 15,434 Foresters moved off dealer lots and into the driveways of new owners in May 2025. As of last month, 84,629 Foresters had been sold since the start of this year, a 3.5% year-over-year increase. In addition, Osaki noted that strong Forester sales in Japan could reduce the impact of U.S. tariffs. "The new Forester is performing extremely well," Osaki said. He also added that the hybrid version was selling beyond its expectations. To help further cushion its tariff impact, Subaru plans to ramp up production in its U.S. factory in Indiana, its only overseas plant that makes finished cars. Starting this fall, Subaru will invest 40 billion yen (~$277 million) to begin producing the new Forester at the plant. The factory currently churns out around 340,000 to 350,000 vehicles annually, but Osaki said it could push past 400,000 with the new investment. Still, shifting more production away from Japan caused concern among shareholders. Subaru's domestic manufacturing operations are centered in Gunma prefecture, where many of its suppliers are also based. Osaki acknowledged the dilemma, noting that boosting U.S. output is impossible without its suppliers. "It's true that it would improve our ability to deal with the tariffs, but it would be would be difficult without cooperation from all of our suppliers," Osaki said in response to shareholder questions. "We need to think about this comprehensively." Subaru itself is in a precarious position. Last month, it informed dealers that price increases would add an additional $750 and $2,055 to the cost of vehicles, depending on the model and trim. Specifically, Forester buyers got a price hike between $1,075 and $1,600, depending on trim, while Crosstrek and Impreza buyers got hit by a $750 price bump. At the time, Subaru did not explicitly cite the tariffs as the reason behind the price bumps but noted that they are a response to "current market conditions." "The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products," it said. Fast-forward to now, it seems that Subaru is proactive in recognizing what is working and what is not, though it is tough to tell what the tariff picture will be. According to a new report by Bloomberg, Japan's chief trade negotiator Ryosei Akazawa is on his way to Washington, D.C., to hold his seventh round of trade negotiations with his American counterparts. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Auto Blog
8 hours ago
- Automotive
- Auto Blog
You're Not Imagining Things: Cheap Used Cars Are Vanishing
Used car prices are still rising If you're struggling to find a decent used car for under $20,000, you're not alone, and you're not imagining things. A new study from iSeeCars finds that the number of affordable, late-model used vehicles has dropped off a cliff in recent years. Back in 2019, nearly half (49.3%) of all 3-year-old used cars were priced at or below $20,000. Today, that number has shriveled to just 11.5%. The average price of a 3-year-old used car is now $32,635 — a staggering 40.9% jump from 2019, when it was just $23,159. While the pandemic may feel like old news, its economic aftershocks are still distorting the car market. 0:01 / 0:09 Costco members can save $3,000 on a new Chevy Corvette Watch More 'The pandemic may be a fading memory, but the lack of new car production five years ago has created a 'pandemic hangover' effect,' said Karl Brauer, executive analyst at iSeeCars. Budget buyers are being pushed to older, higher-mileage cars The most affordable segment of the used market — cars under $20,000 — has shrunk dramatically across all major vehicle types. Passenger cars saw the steepest increase in price, climbing 48.7% since 2019. That means entry-level sedans that once anchored the affordable used car market are now largely out of reach. 2022 Honda Civic — Source: Honda In 2019, more than 70% of 3-year-old passenger cars were priced under $20,000. In 2025? Just 28.1%. SUVs fared even worse, dropping from 39.2% to a mere 8.1% share in the sub-$20K category. Familiar nameplates, unfamiliar prices The shift in pricing is especially evident in once-affordable bestsellers. A few years ago, it wasn't hard to find a lightly used Honda Civic or Toyota Camry for under $20,000. Now, those same models are averaging well over that threshold. The Civic's average price jumped 44.6% to $23,813, while the Camry rose 43.5% to $23,755. 2022 Nissan Sentra SR — Source: Zac Palmer Some of the biggest price leaps came from small sedans: Nissan Sentra: Up 45.7% to $18,224 Toyota Corolla: Up 37.7% to $19,792 Chevy Equinox: Up 27.5% to $22,228 Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. These were once the go-to models for frugal shoppers. Today, they're inching closer to new-car pricing, without the warranties or latest tech. Final thoughts The used car market has been rising for three straight months, and there's little indication prices will fall significantly anytime soon. The pandemic-related slowdown in new car production from 2020 to 2022 created a ripple effect that still limits the supply of newer used vehicles. Yet demand remains strong, especially for reliable models from Toyota, Honda, and Subaru. CarMax dealership — Source: Getty For buyers with a strict $20,000 budget, the result is clear: you'll likely need to shop older, higher-mileage vehicles, or rethink what kind of car you can afford. As Brauer put it, 'Many car buyers are now priced out of late-model used cars, forcing them to consider older models with more miles to fit within their budget.' About the Author Elijah Nicholson-Messmer View Profile
Miami Herald
9 hours ago
- Automotive
- Miami Herald
You're Not Imagining Things: Cheap Used Cars Are Vanishing
If you're struggling to find a decent used car for under $20,000, you're not alone, and you're not imagining things. A new study from iSeeCars finds that the number of affordable, late-model used vehicles has dropped off a cliff in recent years. Back in 2019, nearly half (49.3%) of all 3-year-old used cars were priced at or below $20,000. Today, that number has shriveled to just 11.5%. The average price of a 3-year-old used car is now $32,635 - a staggering 40.9% jump from 2019, when it was just $23,159. While the pandemic may feel like old news, its economic aftershocks are still distorting the car market. "The pandemic may be a fading memory, but the lack of new car production five years ago has created a 'pandemic hangover' effect," said Karl Brauer, executive analyst at iSeeCars. The most affordable segment of the used market - cars under $20,000 - has shrunk dramatically across all major vehicle types. Passenger cars saw the steepest increase in price, climbing 48.7% since 2019. That means entry-level sedans that once anchored the affordable used car market are now largely out of reach. In 2019, more than 70% of 3-year-old passenger cars were priced under $20,000. In 2025? Just 28.1%. SUVs fared even worse, dropping from 39.2% to a mere 8.1% share in the sub-$20K category. The shift in pricing is especially evident in once-affordable bestsellers. A few years ago, it wasn't hard to find a lightly used Honda Civic or Toyota Camry for under $20,000. Now, those same models are averaging well over that threshold. The Civic's average price jumped 44.6% to $23,813, while the Camry rose 43.5% to $23,755. Some of the biggest price leaps came from small sedans: Nissan Sentra: Up 45.7% to $18,224Toyota Corolla: Up 37.7% to $19,792Chevy Equinox: Up 27.5% to $22,228 These were once the go-to models for frugal shoppers. Today, they're inching closer to new-car pricing, without the warranties or latest tech. The used car market has been rising for three straight months, and there's little indication prices will fall significantly anytime soon. The pandemic-related slowdown in new car production from 2020 to 2022 created a ripple effect that still limits the supply of newer used vehicles. Yet demand remains strong, especially for reliable models from Toyota, Honda, and Subaru. For buyers with a strict $20,000 budget, the result is clear: you'll likely need to shop older, higher-mileage vehicles, or rethink what kind of car you can afford. As Brauer put it, "Many car buyers are now priced out of late-model used cars, forcing them to consider older models with more miles to fit within their budget." Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Time of India
16 hours ago
- Time of India
Delivery boys arrested for assaulting traffic constable and snatching e-challan device in Mumbai
Mumbai: The Navghar police in Mulund on Friday arrested two delivery boys who, in a fit of rage, allegedly assaulted a traffic police constable and forcibly snatched an e-challan device during a signal violation incident at Hariom Junction in Mulund East. According to the police, the incident occurred around 12:42 pm on Thursday. Laxman Rathod, a traffic constable who was on duty at Hariom Junction, noticed a two-wheeler, coming from the station side, jumping a red signal. Acting swiftly, the constable captured a photograph of the violation using the department's handheld e-challan machine. However, the situation quickly escalated when the two men on the bike turned back and confronted Rathod. The pillion rider, identified as Amandeep Bhardwaj, allegedly snatched the challan device from Rathod's hand. When the constable attempted to stop them, both accused reportedly raised their hands in a threatening manner and forcefully pushed the officer before fleeing with the device. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai Based on the CCTV footage and technical help, the Navghar police arrested Amandeep and Indrajitsingh Bhardwaj, residents of Mumbra and employed as delivery personnel. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bring home all new SP160 & get an instant cashback up to ₹5000# Honda Learn More Undo They were traced and taken into custody. The stolen device was also recovered. A case was registered under BNS Sections 309(4) (obstructing public servant in discharge of duty), 132 (assault or use of criminal force to deter public servant from duty), and 3(5) (mischief relating to electronic device) at Navghar police station.
Yahoo
18 hours ago
- Automotive
- Yahoo
Honda recalls 259K vehicles for brake pedal defect
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. American Honda Motor Co. has recalled 259,000 vehicles for a condition that may cause the brake pedal to become misaligned, which increases the risk of a crash, according to the National Highway Traffic Safety Administration. The recall is due to a manufacturing defect with the brake pedal pivot pin and includes the 2023-2025 Honda Pilot and Acura MDX; and 2021-2025 Acura TLX sedan. Dealers will inspect and replace the brake pedal assembly on the vehicles as necessary, free of charge. Owner notification letters are expected to be mailed July 28. According to the NHTSA, a Tier 1 supplier's manufacturing error resulted in some brake pedal pivot pins not being staked before assembly. The error can cause the pedal to move laterally, leading to unintended application by a driver and increase the risk of a crash. Honda's Tier 1 supplier, Otsuka Koki Co., was in the midst of a production transition from the U.S. to a Mexico facility between June 14 and Oct. 25, 2024. The planned move required the company to increase its staffing levels to mitigate any supply disruptions. However, some of these new employees were insufficiently trained and the pivot pin staking process was not performed, according to the report. These defective parts were then supplied to Honda and installed in the recalled vehicles. All of the improper brake pedal pivot pin staking occurred at the supplier's U.S. plant, which has since closed. Production was fully transferred to Mexico in early November 2024. In addition to the manufacturing error, a malfunction with the supplier's QR code scanning system that's designed to prevent process omissions was disabled, which allowed the problem to go undetected. But after it was discovered, Otsuka Koki Co. began to utilize a camera sensor to verify that the pivot pin is staked. Honda was made aware of the problem on April 4, 2024, after it received a report of brake pedal movement on a vehicle. The automaker subsequently launched an investigation to determine the cause. On Dec. 2, 2024, the automaker received a second report of a vehicle experiencing brake pedal movement. After receiving the second report, Honda in February began to inspect the parts inventory produced by its supplier. Through April of this year, Otsuka Koki Co. also investigated and analyzed the issue to determine the number of defective parts it may have supplied to the automaker. On June 5, Honda determined that the problem resulted in noncompliance of the Federal Motor Vehicle Safety Standards and elected to conduct the recall. As of June 5, Honda is aware of three warranty claims related to brake pedal movement, but is not aware of any injuries. The recall is Honda's 12th since Jan. 1 and its second largest of 2025. In January, the company recalled over 294,000 vehicles to update engine control unit software that may lead to stalling or a sudden loss of power. Recommended Reading Honda recalls over 294K vehicles for engine stalling
