This wouldn’t really be new for any other large manufacturer, but Subaru is celebrating this even as it has seen a nearly 30% increase in sales during the same time in 2014. Who do they think they are? Google or Apple? Do they think they are tech company in the late 90s or something? And in a market where almost every automaker is witnessing a drop in sales mainly because of the ongoing recession, high taxes, and so on, it has had the highest sales growth, despite being the 22nd largest manufacturer in the world. In fact, no other company managed to achieve even half of that amount.
Bubble? There is no bubble here. The products are real and tangible.
Successful September World-wide
So, how has a brand that has avoided the spotlight for so long managed to gain center stage, especially in the country worst affected by the recession (the country that started the recession mainly because of The Fed and Barnie Frank)? Even Subaru of New Zealand has had a self-claimed “super successful September,” setting the sales chart on fire by selling a staggering 259 vehicles for that month, its highest in years. The last time the company hit such large volumes was during the September of 2007.
Back in Time
When the company decided to go all-wheel-drive (AWD) for all of its cars way back in 1996, many critics and even some of the company’s own management felt that it was a move in the wrong direction.
However, this small time car manufacturer had forfeited its 50% customer base for a solid sales network, backed by a dedicated dealer team that never doubted the company’s motives from the beginning. And although the company has never made headlines for its sales numbers, last September’s sales figures have come as a shock to all the major players in the market, overtaking comparable brands in its market segment.
Main Factors
A major contributor to Subaru’s slow but sure rise to success has been the development if its signature model, The Outback, something that many consider to be the seed that has grew into today’s SUV-centric market. Subaru has also been building up on its rally pedigree, refining its offerings, and redefining the way vehicles are manufactured and sold.
But the main reason why Subaru became successful as a company was when it basically stopped behaving like one, by creating ads and marketing campaigns that were centered on children, pets, and outdoor sports. This along with its numerous philanthropic initiatives has given rise to a company whose vehicles are a lifestyle choice.
Favorable Conditions
The company might be tempted to say that its sales team has done a phenomenal job in getting Subaru back in to the game, but the truth is that weaker yen and rising dollar has given the company a vital boost. Also, the company employs over 4,000 workers in America, mainly at its massive Indiana factory.
But in a country like America, where the people love SUVs but no longer see them as an economically feasible option, Subaru’s flagship models – the Forester, Outback, and recently launched Crosstrek are exactly the kind of cars that American and other customers are looking to buy. And with cars that have decades of heritage and rallying pedigree to back them up, Subaru seems to have a bright future and this seemingly small company might be set to expand in a big way.
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