FHI CEO: "If only we had more cars, we could be selling more"

[crisscross]

http://www.reuters.com/article/2015/05/08/fuji-heavy-results-idUSL4N0XY39N20150508

“Chief Executive Yasuyuki Yoshinaga said Subaru's stretched capacity would mean global vehicle sales would rise just 1.9 percent to 928,000 vehicles in the year to next March. While U.S. growth will be a healthier 5.3 percent, the company is facing a lost opportunity as U.S. dealers clamour for far more cars."

"If only we had more cars, we could be selling more," Yoshinaga told a news conference, noting that inventory levels in the United States remained too low....Fuji Heavy estimated a 19 percent jump in group operating profit to 503 billion yen ($4.20 billion) in the year through next March, for a margin of 16.6 percent, by far the highest in the industry, excluding makers of luxury cars."

More details at Auto News, including future models and next-generation engines:

http://www.autonews.com/article/20150508/OEM/150509875/subaru-maker-reports-21-profit-increase-plans-more-u-s-capacity

Starting in 2016, Subaru will introduce a new modularized platform called the Subaru Global Platform that will support every model from the Impreza to the Outback.

It will debut in the next-generation Impreza and be engineered with a focus on safety, maneuverability and interior space.

Among the new products on tap is a seven-seat SUV geared toward the North American market to replace the aging Tribeca.

Subaru will also convert all its gasoline engines to direct injection, starting the same year. The technology will be standard in a next-generation boxer engine Subaru will roll out.

Subaru will also introduce a plug-in hybrid for North America, to meet U.S. zero emissions vehicle regulations taking effect in 2018. That model will be based on Toyota hybrid technology.

[boxkita]

In other news, Subaru has announced the STI brand is not supportable on the SGP and will be dropped.

[jj808]

They are neutering the rest of their North American lineup why not go all the way?

[StoplightAssassin]

http://theinspirationroom.com/daily/interactive/2010/10/subaru_mediocrity_site.jpg

[SubieDriver]

It seems like the simple economic solution would be to raise prices, thereby reducing demand, while simultaneously providing more revenue for expansion.

[Cyc66]

Car companies usually do this with interest rates and incentives. Subaru doesn't really have much room to increase their prices, a few thousand dollars more and suddenly all their competitors are cheaper even though you usually don't get AWD. The 'free AWD' is a major selling point.

[dgoodhue]

It seems like the simple economic solution would be to raise prices, thereby reducing demand, while simultaneously providing more revenue for expansion.

 

This is definitely a possibility from an economics stand point. They could slowly up the price another $500-1000.

 

However, I think that they are trying to keep the price at the same price point it is now and continue growing production. The Indiana plant expansion should starting helping in 2016. Subaru is probably looking at a calculated short term shortage for when the Indiana plant expansion is up to full production.

[SubOperator]

My company's office is in Quonsett business park in RI close to car port where FHI delivers cars among other manufacturers. I drive or run by every so often just to see if I spot something new or unusual. Subaru's lot is usually full of Outbacks and Imprezas with some Wrx/Sti here and there. Except for yesterday - most of the lot is empty with probably couple of dozen Outbacks and 2-3 WRX, I saw some Imprezas and only one STI. So they may have actual supply shortage.

 

On the other hand, I received a personal coupon from SOA for $1000.00 discount towards any new Subaru. Not sure why they would want to offer even limited discounts if cars are flying off dealers' lots.

 

Tribeca's replacement is good news. I just replaced shocks on our 07 and it rides like new now but I would like to have an option for a replacement in couple of years.

[Byll]

I work for a local Subaru dealer, in driving new car trades between dealers in the US east coast mid-states. I noted to my supervisor that I have not been called upon to drive many cars lately, and he shared with me that there is a distinct shortage of Subarus, at this time. if they could get them, they could sell them. And, I would make some bucks. Heh. Heh.

[Subisnob]

http://theinspirationroom.com/daily/interactive/2010/10/subaru_mediocrity_site.jpg

 

HAHAHA It's a Kia Optima from the early 2000's.

 

It seems like the simple economic solution would be to raise prices, thereby reducing demand, while simultaneously providing more revenue for expansion.

Then this will be the only Subaru I ever drive;)

 

Car companies usually do this with interest rates and incentives. Subaru doesn't really have much room to increase their prices, a few thousand dollars more and suddenly all their competitors are cheaper even though you usually don't get AWD. The 'free AWD' is a major selling point.

 

I completely agree. If they raise prices as to where I pay the same for a different brand car and have to lose AWD then so be it because I will certainly gain a more luxurious interior going to another brand. The cheap interior is a major downfall but the car is cheaper and has AWD so I had no problem sacrificing for it living here in Northeast. BUT, I do have a 4wd truck that I can drive in snow storms so the AWD is only meaningful if a bargain.

[YeuEmMaiMai]

compared to the competition Subaru offer better value and are cheaper

 

a FULLY loaded outback is $36,835, compare that to a CR-V that tops out at $32,895 and there is no

 

eyesight

a healthy 6 cylinder under that CR-V hood

HID lighting

 

if you compare it to the 2.5i $33,835 with all the options the value is even more apparent and it becomes clear why Subaru cannot make em fast enough.

[MJ in PA]

Everything comes at a cost. Did Subaru save me money by using ultra-thin sheetmetal? I don't think so - whatever I saved on fuel I probably spent on paintless dent repair after a minor hail storm! Cheap wheel bearings, head gasket replacement at 90k miles....I'm not convinced that the reality matches the "Subarus are bulletproof and last forever" image portrayed in the ads, given what I've spent maintaining mine.