Subaru: A Rare Bright Spot Amid Automakers' Gloom

The following article appeared today on CNN and TIME.COM (Time Magazine's website).

Tuesday, Jan. 13, 2009

Subaru: A Rare Bright Spot Amid Automakers' Gloom

By BILL SAPORITO
Subaru's customers are, the company admits, a little oddball. How else do you explain the fact that Subaru of America was the only car company to increase unit sales last year? Subaru buyers tend to be overeducated; they buy less car than they can afford and hang on to it forever. "They pay cash, and then you never see them again," says Tim Mahoney, Subaru of America's chief marketing officer. At least not for an average 7.3 years, when they return like migrating carbirds to buy another one. Recession or not.

You know, of course, that Detroit is on its knees. But Stuttgart, Tokyo and Seoul aren't faring particularly well either. Toyota's U.S. sales were off 16% last year. Yet Subaru was positive to the tune of 491 cars. The company sold 187,699 vehicles last year, led by value-driven models like the Forester SUV and Outback wagon ($19,995 to $22,295) and the muscled-up Impreza WRX ($24,995), a small sedan. (See pictures of the remains of Detroit.)

That's an increase of just 0.3% over 2007. But in a disastrous year for the industry, it boosted Subaru's market share to 1.92%, from 1.2%. In the auto industry, that's a huge increase — and a higher market share than Cadillac, for instance. Subaru did it without giving away the store too. For 2008, the company decided to roll back its list prices and back off the rebates. The sticker price of the 2009 Forester, for instance, was lowered to $19,995, from $21,295. "We had to bring down our incentive costs and stop selling based on the deal," says Tom Doll, executive vice president of the company, which is a division of Japan's Fuji Heavy Industries.

Loyalty can help you do that, and Subaru has leveraged its existing customers, who identify more with their cars than perhaps is healthy. "If you stop a Subaru owner at sporting event, ski slope, shopping center, they'll tell you, 'I love this car,' " says Mahoney. And being the opinionated-bumper-sticker type, they are more likely to recommend the brand than even Toyota or Honda owners.

Certainly, it's a perfect era for a car company that is green (it boasts zero-landfill production plants), safety-focused, and can deliver a fair amount of value and performance. In the snow belt regions of the Northeast and intermountain west, Subaru has long had a following because of its all-wheel-drive portfolio.

But Subaru has successfully expanded both its geography and demography, becoming a more national car company and getting a broader customer base.

To accomplish both, the company expanded its safety-first image to one that includes better performance and more fun. After all, who wants to motor around in the equivalent of all-wheel-drive bubble wrap? California, a vital auto market, discovered Subaru courtesy of models like the Impreza WRX. All-wheel drive is terrific in the Sierras, but in the Los Angeles Basin, it's more about performance, which the 265-hp, intercooled, turbocharged WRX could address. The muscle models scored well with younger drivers and allowed Subaru to get more exposure for its full line.

Having more than weathered the dreadfully bad 2008, Subaru officials aren't planning on lowering sales this year. At Detroit's North American International Auto Show, Subaru unveiled a concept car that will likely evolve into a midsize sedan version of its Legacy. And on a broader note, Doll says that more available credit and Barack Obama's stimulus package should get additional buyers into showrooms. Of course, if all else fails, there are always those folks who bought an Outback 7.3 years ago — and are ready to return.

All-new 2009 Subaru LEGACY CONCEPT
Debuts at the 2009 North American International Auto Show
- Concept car hints at future Legacy design language -
- Features Symmetrical AWD and 3.6-liter Boxer engine -

Detroit -- January 11, 2009 – Subaru of America, Inc. revealed the 2009 Subaru LEGACY CONCEPT today at the 2009 North American International Auto Show. The new LEGACY CONCEPT is a hint at the future of Legacy design. The design showcases the sport sedan heritage of the Subaru Legacy, but in more modern and purposeful package.

Marking the 20th anniversary of the Subaru Legacy, the LEGACY CONCEPT has been developed to showcase the Legacy’s sporting capabilities and features Subaru’s Symmetrical All-Wheel Drive system mated to a Horizontally-Opposed Boxer engine. The design concept is based on a larger 108.3 in. wheelbase designed to maximize interior space and provide comfortable accommodations for four adults.

The theme of concept design is "Presence", represented by the aggressive front facia and solid yet expressive body. Four powerful and defined wheel arches emphasize the dynamism of Symmetrical AWD. Sharp design lines carve out a substantial mass as they flow from the hood, across the roof to the trunk, while the sharp body lines project a sense of strength. Wedge-shaped Side Rear Vision Cameras are featured and provide a sense of flow from the momentum of the A-pillar lines. A character line runs from just before the A-pillar and sweeps up to the tail just above the taillamps.

This grille design incorporates a central wing motif that defines the Legacy’s Subaru brand identity. The Subaru logo separates a deep central grille shape that is accented by sharp headlamps with a dual vertical-row layout of multiple LED lamps. In addition, the slim, vertical fog lamps set in a large front valance with angular air intakes add a jewel-like touch to the front design. The LEGACY CONCEPT is finished in a special High-luster “Ultimate Silver” paint to accentuate the design's angular shapes.

The interior design features a striking four-seat layout that showcases the "High Definition" design theme. Comfort and style are achieved with a mix of touch-screens, cameras and modern surface coverings. The high-tech look blends with comfort through four separate seating areas, a high roofline and generous legroom for all passengers. The center console features a large touch-panel display that concentrates various functions for simplified use, while the flowing shape extends vertically to emphasize the feeling of strength and solidity in union with the exterior. A steering wheel and shift lever have been adapted to accentuate the sporty nature elemental in the Legacy’s DNA.

In-car entertainment is featured through monitors with multiple functions that are located in the center console, as well as in the rear of the front seat headrests to provide comfortable functionality as well a calm design that creates a relaxed ambiance for passengers. The monitor for the Side Rear Vision Camera has been situated toward the front of the roof to maximize rear visibility. The design is capped off with seats covered in pearl white leather that give off a blue sheen, while black metallic leather has been used for the door trim to create contrast with the instrument panel.

The Legacy was introduced globally in 1989, produced in Japan and Lafayette, Indiana. Since that date until November 2008, the total global production has exceeded 3.6 million vehicles making it Subaru's core model. During that period, Subaru’s core technologies of a Horizontally-Opposed engine and Symmetrical AWD have served to further the basic elements of automotive performance while continuously evolving for unparalleled handling, stability, and safety. This LEGACY CONCEPT incorporates the Legacy heritage while also serving as a concept model that provides an image of the new driving comfort and reliability that will continue to serve as a touchstone for Subaru.

Specifications:
Body size (Overall: Length x Width x Height): 188.8 x 71.7 x 59.0 inches
Wheelbase: 108.3 inches
Engine: 3.6-liter six-cylinder Horizontally-Opposed engine
Tire size: 225/45R19
Occupancy: Four persons

$21,250 Raised by Premier Subaru!

I am pleased to announce that, during the Subaru "Share the Love" Campaign, sales through Premier Subaru contributed $21,250 to the following five charitable organizations: National Wildlife Federation, Meals on Wheels, Boys and Girls Clubs of America, the ASPCA and Habitat for Humanity.

During these difficult economic times, I want to thank those new customers who purchased a new Subaru vehicle during this program. With your purchase, this money will be contributed to these five excellent organizations.

Subaru of America Announces Year-On-Year Sales Increase for 2008

Subaru of America Announces Year-On-Year Sales Increase for 2008