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High Flying Subaru to Add Models, Capacity

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Subaru recently unveiled their new business plan aimed at adding new models and more capacity in order to increase sales, specifically in North America. The new business strategy aims to increase global sales by 33% by 2020. Subaru is experiencing record setting sales, they have already reached the goals of their previous business plan two years ahead of the time table. Subaru is also increasing capacity at its factories in North America, adding hundreds of thousands of units in expanded capacity. However, the goals of the new business plan rely heavily on sales in North America.

Subaru has added a new 7 seater SUV specifically geared towards North American consumers. Some say this move is risky, to create a car specifically for one market, yet Subaru has had steady growth the past 5 years so it’s hard to argue with their business methods. The Japanese car manufacturer has also begun to make changes to abide by the new CAFE standards that will be implemented in 2025. Subaru has added a brand new plug in hybrid to it’s lineup in order to create more fuel efficient vehicles, as well as upgrading and improving engines to make them more eco friendly. All Subaru engines will now have direct injection by 2016 as well as Subaru overhauling its power train technology.

Subaru has been one of the fastest growing automobile manufacturers in the U.S. In 2013 alone sales jumped 26%. By introducing new vehicles geared towards American consumers as well as coinciding with new CAFE standards, I believe Subaru will be very successful. Being one of the fastest growing car manufacturers in America, I think Subaru will have continued success as they target American consumer preferences as well as follow a business strategy similar to Ford by trying to strengthen the brand name and image of the rapidly growing Subaru.