Subaru: '06 sales growth to be modest

[gfxdave99]

http://www.jconline.com/apps/pbcs.dll/article?AID=/20060204/BUSINESS/602040323

 

By Max Showalter

mshowalter@journalandcourier.com

 

 

Subaru of America Inc. posted only a fractional increase in vehicle sales during January, when compared to the same month in 2004, and growth expectations are not too promising for the remainder of the year.

 

 

"North American sales are getting a pure lift from the B9 Tribeca's rollout, but sales are still expected to drop this year," said Mitsuru Takahashi, general finance manager for Subaru's parent company, Fuji Heavy Industries Ltd.

Takahashi spoke with reporters Friday in Tokyo as FHI reported a 61 percent drop in fourth quarter net profits, to $40.8 million.

 

 

A softening of the yen and the payment of incentives to more than 700 Japanese employees who took early retirement options were major factors in the lower earnings report.

 

 

In January, Subaru sold 12,384 vehicles in the United States, a gain of 0.4 percent from the 12,340 sold during the same month in 2005.

 

 

"Subaru is looking forward to continuing its trend of consecutive record sales in 2006," said a statement from Fred Adcock, executive vice president of Subaru of America Inc.

 

 

"We've got the product to do it, including the 2007 Subaru B9 Tribeca that will make its world debut at the Chicago Auto Show next week."

Sales of the Japanese-built Impreza increased 17 percent, to 2,550 units in January, while sales of the Forester -- also made in Japan -- registered a 20 percent decline, to 3,331.

 

 

Among vehicles built at the Subaru of Indiana Automotive Inc. plant in Lafayette:

"All associates at SIA are very proud of the fact that SIA-built vehicles will be sold in Mexico," said Tom Easterday, senior vice president at the Lafayette plant.Sales of the 2006 model of the B9 Tribeca, which averaged about 2,110 units per month since it was introduced in late May, totaled 1,421 units last month.

Sales of the Legacy line, which includes Outback models, fell by 15 percent to 4,796 units.

Sales of the Baja sport utility truck, which is being phased out this year, declined by 19 percent to 286 units.

Fuji Heavy Industries has slightly lowered its short-range Subaru sales expectations for the U.S. and Japanese markets, but has kept its worldwide projections virtually unchanged.

The company recently announced plans to begin marketing the Tribeca, Legacy and Outback models in Mexico, starting this month.

"SIA-built vehicles are currently sold in the United States, Canada and Chile, and we will begin production of additional export models of the Subaru B9 Tribeca for Australia, Japan and European countries this summer.

"The addition of the Mexican market, and the future addition of several other markets, serves as further evidence of the high quality and innovative technologies incorporated into every Subaru produced at SIA."

[rao]

This was reported last year by me.

[gfxdave99]

This was reported last year by me.

 

Really how did you get the january 2006 sales numbers in 2005?

 

[rao]

I can see the future

[Jedi Pimp]

So it would seem the Chewbacca and Impreza are the only models selling well now....

[IwannaSportSedan]

Not that anyone would know about the Legacy GT to be interested in buying it.

 

I thought the Outback was the bread-winner, though?

[petmor]

Man, you guys really have modest sales in the US. Over here in the old cold world(Sweden) Subaru sold a staggering 262 cars in January. of which 151 were Legacys, 85 were Foresters and a whopping 26 Imprezas found new owners. The Tribeca hasn't started sales here yet. I guess they'll sell another handfull