The strong demand for Subaru models makes the carmaker to raise the profit and sales forecast for its three-year business plan.
The owner of Subaru, Fuji Heavy Industries Ltd, foresees record profits and sales in the next three years in the North American auto market. This positive trend is forecasted by Subaru’s CEO and President, Yasuyuki Yoshinaga, as he raised the target for the carmaker’s business plan running through March 2018. He also said that plans to almost double the production capacity in the US starting from mid next year. Subaru is on the right path to hit another record year in annual profits, and if so it is going to be its fourth consecutive one. “I’m really happy about the sales momentum,” Yoshinaga said. “The risk for us is not being able to make enough cars.” Demand in North America is strong, allowing Subaru not to rely on China’s incentives policy and, as a consequence, cutting its sales target there, in order to keep its profit margins, Yoshinaga said.
In Japan, there’s an average delivery time of two and a half months for Subaru models, while in the US, its largest market by sales volume, dealers also insist on the carmaker to increase its output capacity to reduce delivery times, he said. “Subaru has established its position in the U.S. market as a reliable brand,” Takeshi Miyao, commented an analyst at researcher Carnorama in Tokyo. “The Subaru boom won’t be temporary and I expect their sales will remain strong going forward.”