Subaru Raising Sales Targets Again Due To Consistent Sales Growth!
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This is a discussion on Subaru Raising Sales Targets Again Due To Consistent Sales Growth! within the News and Announcements forums, part of the Community - Meet other Enthusiasts category; Ahead of schedule, Subaru's global boss has just announced ( December 21st), that Subaru is again raising sales targets, discussing ...

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    Registered User WRX John's Avatar
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    Subaru Raising Sales Targets Again Due To Consistent Sales Growth!

    Ahead of schedule, Subaru's global boss has just announced ( December 21st), that Subaru is again raising sales targets, discussing greater manufacturing capability in the United States, and noting a very positive growth/sales output.

    Quote Originally Posted by AutoNews
    Subaru boss: More sales, more output!

    Years ahead of schedule in achieving his North America sales goal, Subaru's global boss said he will lift the company's sales target next spring as he races to boost supply.

    Subaru has plenty of room to expand capacity at its Lafayette, Ind., assembly plant if extra output is needed beyond the increases already planned for next year, said Yasuyuki Yoshinaga, president of Subaru-maker Fuji Heavy Industries Ltd.

    Any additional capacity expansion will likely happen there, the company's only plant outside Japan, rather than in Japan or in a new factory somewhere else, such as Mexico, he said.

    The ramp-up comes as Fuji Heavy struggles to meet red-hot demand for Subaru's all-wheel-drive vehicles while preserving its corporate culture as a nimble niche player. In recent years, tight supply has been the only factor restricting rampant growth.

    Citing brisk demand, Yoshinaga predicted that Subaru will hit its North America regional sales target of 600,000 vehicles in 2015, five years ahead of his original schedule. Achieving the goal would deliver an eighth straight year of growth and a seventh straight year of record sales.

    Sales might be even higher if Subaru had more vehicles to sell. Capacity-constrained Subaru of America started December with the fewest units on hand it has had any month this year, enough to last a mere 16 days at its November sales pace, according to the Automotive News Data Center.

    "We have to revise our target a little bit upward," Yoshinaga told Automotive News. "When we announce the next fiscal full-year results in May, we will announce revised target numbers for the next three fiscal years: 2016, 2017 and 2018."

    Yoshinaga did not disclose new targets. They are still being discussed with Subaru's North American business unit, he said.

    In the meantime, Subaru is ramping up capacity at its factory in Lafayette, Ind. Next year, it will add production of the redesigned Impreza compact.

    In addition, it will boost annual production capacity for Subaru vehicles to 394,000 by the end of 2016 from 200,000 now. The plant currently has another 100,000 units of capacity dedicated to making the Toyota Camry, but Subaru will stop making cars for Toyota there by the fall of 2016.

    Then in 2018, Subaru will tack on production of a new three-row crossover. That will come on top of the Impreza as well as the Legacy sedan and Outback crossover, which already are manufactured there.

    Subaru has not decided yet whether another capacity expansion will be needed to accommodate the new crossover, Yoshinaga said.

    But there is plenty of room to grow in Indiana, he added.

    "If we use the current lines, we can increase capacity a little," Yoshinaga said. "But if we build a new assembly line, we can have huge production capacity."

    A big increase wouldn't be easy, though, he noted. There are strict environmental regulations that an expanded factory would have to meet, and it would prove challenging to find the required additional workers, he said. A sudden increase would also put similar strains on suppliers in the region.

    But one thing Subaru is unlikely to do is to follow the migration of automakers setting up factories in Mexico.

    "If we have to increase production capacity," Yoshinaga said, "it will be in the U.S. because that is where the demand is."

    You can reach Hans Greimel at hgreimel@crain.com.
    http://www.autonews.com/article/2015...es-more-output

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    lit fam XJman's Avatar
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    Good news we started making chassis blanks for them this year. The tooling keeps us super busy.

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    All? NO ALL!

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    Hammerdown Mod of Thunder josnroh's Avatar
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    Sounds like a solid business plan.
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    Registered User ConBroMitch's Avatar
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    Can't help but to be super happy for Subaru during this time of immense growth.

    But I really REALLY hope they don't lose sight of what got them there in the first place.
    "Straight roads are for fast cars, curvy roads are for fast drivers." -Colin McRae

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    Registered User ProZach626's Avatar
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    I'm confused. This article contradicts an article I read a couple months ago where Subaru's made a statement that basically stated they were not going to expand their production, because they wanted retain their high resale value of their vehicles and keep a niche market.

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    Water.....sometimes waves rqjoe's Avatar
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    Quote Originally Posted by ProZach626 View Post
    I'm confused. This article contradicts an article I read a couple months ago where Subaru's made a statement that basically stated they were not going to expand their production, because they wanted retain their high resale value of their vehicles and keep a niche market.
    Where did you read this? I had not heard this. Not that I hear everything of course, but I am curious why they would say this vs. wanting to expand. Don't recall where you read this do you?

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    Registered User ConBroMitch's Avatar
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    Quote Originally Posted by rqjoe View Post
    Where did you read this? I had not heard this. Not that I hear everything of course, but I am curious why they would say this vs. wanting to expand. Don't recall where you read this do you?
    This isn't the original article. But I will post back when I find it.
    Subaru head wants to limit growth to keep niche status - SlashGear

    Edit: That didn't take long.. http://www.autonews.com/article/2015...t-sales-growth
    "Straight roads are for fast cars, curvy roads are for fast drivers." -Colin McRae

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    Water.....sometimes waves rqjoe's Avatar
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    So is this the same thing prozach626 is talking about? If so, I don't necessarily see a contradiction. He does not say, now, that they are doing anything radically different, just revising the upward target a little. I see it as wanting to keep the niche market and keep the cars resale value high while at the same time seeing sales rise so "also" wanting to find that magical top end number of vehicle production to make the most money. I just see it as good management looking to maximize everything while being a little cautious. I like hearing all this; time to buy some more Fuji stock.

  11. #9
    Registered User ProZach626's Avatar
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    I misread/couldn't remember the first article. I see now that they do want to grow, but cap it off at around 1.1 million units/year as opposed to 're sky is the limit' sort of philosophy.

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