Subaru Sales Holding Strong, Drops WRC
Subaru executives have good reason to smile this holiday season. With automobile markets quickly spinning into a black hole of profit loss, plummeting sales and potential bankruptcies, the quirky Japanese automaker expects to see a bona-fide sales increase.
| Ironically, the sales savior for the company has been the revamped Forester SUV which debuted last May. As other SUVs fell from grace, the new Forester outsold its predecessor by 34 percent compared to last year.
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Through November 2008, the company posted a 1 percent increase in sales over the previous year, and they expect to finish the term as one of a very select group of manufacturers to actually finish the year in the black.
"While overall numbers were down for the month, November sales remained strong for the core of our product line-up, with Impreza and Forester showing strong growth for the month," said Tim Colbeck, vice president of sales, Subaru of America, Inc. in a Dec. 2 press release.
Ironically, the sales savior for the company has been the revamped Forester SUV which debuted last May. As other SUVs fell from grace, the new Forester outsold its predecessor by 34 percent compared to last year. For the month of November - which proved to be the worst sales month in recent memory for many manufacturers - the Forester posted a record-setting 64 percent increase in sales from the same period last year. By comparison, every other model in the Subaru lineup returned significant declines, save for the compact Impreza which showed a modest 4 percent gain. Overall for November, Subaru only showed an 8 percent decline in sales, not even remotely close to the daunting double-digit drops recorded by their foreign and domestic competitors.
"This is proof that even in a very tough sales market, the right combination of product, price and value can still motivate consumers," said Colbeck.
Along with the Forester, the Impreza is also new for 2009, available in sedan or hatchback format with standard all-wheel drive. 44,906 examples have been sold through November, a 10 percent increase from last year and second only to the 54,249 Foresters that have found new homes thus far.
"Subaru continues to outperform the industry by offering the type of long-term value consumers are looking for in a difficult economic environment," said Thomas J. Doll, executive vice president, Subaru of America, Inc. from the Dec. 2 press release.
The higher sales figures and strong resale values for Subaru products place the company in an enviable position. Unlike their struggling competitors, Subaru doesn't require drastic price cuts or special deals to lure buyers into dealerships, and they aren't offering any. According to Automotive News, the average price incentive across the Subaru lineup is just $1600, whereas the competition is offering as much as $6000 off certain models.
The positive financial news comes with a bitter pill for Subaru enthusiasts, as the manufacturer's parent company Fuji Heavy Industries Ltd. announced its departure from the World Rally Championship at the close of the 2008 season. Subaru had become one of the most popular and enduring nameplates through their 19-year participation in the series, culminating with three manufacturer titles and three driver championships through the mid-1990s. As with Honda's withdrawal from Formula 1, Subaru officials cite the global financial crisis as the main reason for their decision, though they do hold open the possibility of supporting lower level divisions of the sport.
By: Christopher Smith, Autotropolis
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