Subaru registered a 0.3% increase in U.S.
sales to 187,699 from 187,208 in 2007. The amount may seem paltry, but
in this economy it is enormous. Meanwhile, the Big Three and Toyota saw a sharp decline in U.S. sales forcing them to lay off thousands of workers. The Big Three went so far as to cry poor to Congress asking for bailout money to insure their survival, which Congress eventually granted.
Overall, 2008 was a major disappointment for automakers in the U.S. Ford's sales fell 21%, GM sales were down 23%, Toyota's 2008 sales declined 16%, and Honda's sales decreased 8%.
So, what's Subaru, a Cherry Hill, N.J.-based subsidiary of Tokyo-based Fuji Heavy Industries, got that the others don't? Marketing Daily points out it's a "midmarket brand with a limited vehicle portfolio and marketing clout. Considering its budget, which is less than some automakers spend on a single vehicle launch, it's surprising that Subaru was able to stay afloat at all -- and do it without offering huge discounts."
The company won big as Americans drove off the lots with its recently redesigned Forester (pictured above) and Impreza models in record numbers. So far, Forester sales are up 34% in 2009, likely luring some with prices that start at $19,995. In this economy, Americans are price sensitive but also are lured to products they actually want. Add to that a lower labor cost structure, and that's how Subaru earned a buck.
Maybe its a one-year anomaly, but it shows that David can still beat Goliath, especially in the U.S. auto sector. - Gerald Magpily
See Philadelphia Business JournalSee AP story via Yahoo.comSee Marketing Daily
Move over Toyota Motor Corp., Honda Motor Co., Ford Motor Co. and General Motors Corp. because there's a carmaker that actually made money in the U.S. last year: Subaru of America Inc.
