Amidst news of GM, Chrysler and Ford idling plants over Christmas, turning off lights, heat, and elevators, and even buying cheaper office supplies, comes one piece of positive auto industry news: Subaru of America, according to executive vice president Tom Doll, expects to post a small sales increase for 2008, and will also set records for three of its vehicles.
Sales of Subarus were up by 1.2 percent for the first 11 months of the year - a year in which the total sales of all U.S. light vehicles were down by 16.3 percent.
According to Doll, "We're doing it a good way. The quality of our sales is very good. We aren't selling a massive number of cars to fleets." He goes on to add, "We are settled mostly in niches, and our customer is better financially heeled than other car customers - we have good demographics."
Despite their positive momentum, Subaru isn't spending huge amounts of money into advertising or financing offsets. Their lowest finance rate is 3.9 percent, and they average only $1,600/vehicle in incentive spending. Despite this, sales records are expected for the Forester crossover, Legacy sedan and Impreza compact.
The current incarnation of the Forester may be Subaru's biggest success. It was launched in May, 2008 after a redesign made it two inches taller, four inches longer, and $1,250 less expensive, making the base price (before adding the $665 shipping charges) only $19,995. Since the re-launch, sales have increased to the tune of 33.8 percent (through November).
In addition to great purchase results, the Forester was also well-rated by the Automotive Lease Guide, which predicts the vehicle will retain roughly 60 percent of its value after 36 months.
The new Forester may be Subaru's golden child, but the Impreza (available as a sedan and a five-door hatchback) is still selling strong in its 18th month on the market. Numbers through November saw a sales increase of 9.6 percent for the car which, "...sells for under $20,000, and it comes with all-wheel drive." Also doing well is Legacy sedan, which saw a 9 percent increase in sales figures through November, despite the fact that it won't be redesigned until next year (for the 2010 model year).
What does Doll say about the future for Subaru, in a market with predictions of lower and lower 2009 numbers every day? He's hopeful Subaru will continue to be strong. "With the new president and promises to stimulate the economy, we are hopeful, but not anticipating big growth."
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