MattTuck
05-30-2013, 09:44 PM
You may be running out of time!
America is Running Out of Subarus - WSJ (http://online.wsj.com/article/SB10001424127887324682204578514992711813694.html)
Not sure if that link will work.
TOKYO—Surging U.S. demand for some Subaru vehicles could lead to dealer shortages if trends continue, the chief executive of the Japanese auto maker said on Thursday.
A 25% year-over-year leap in April U.S. sales and a 17% gain for the first four months have Fuji Heavy Industries Ltd. 7270.TO -3.18% now expecting sales for 2013 to exceed its 380,000 vehicle U.S. sales target for the business year ending in March 2016, CEO Yasuyuki Yoshinaga said in an interview.
His optimism underscores the company's growing success in the U.S., where it now logs about half its global sales and where it scored a fifth straight year of improved sales in 2012.
[image]
The CEO said the car maker may not be able to take full advantage of strong demand for a compact sport-utility vehicle because of its relatively limited production capacity. The redesigned Forester could reach 10,000 vehicles this month, above a monthly target of 8,000, but only if the company can build enough, he said. It ships all the SUVs from Japan.
"If this situation persists, we'll face a supply shortage," Mr. Yoshinaga said. Even if dealers want more there is little the company can do soon, he said.
This year's initial Subaru sales target in the U.S. represented an 8.6% increase over 2012. But the 17% rise in sales to 125,470 vehicles for the first four months of this year strongly indicates this year will be a banner year for Fuji Heavy. Sales in April were particularly strong thanks to the launch of the remodeled Forester small sport-utility vehicle in March.
The company "will have to set a new target as we are likely to hit" the current goal for the U.S. this year, Mr. Yoshinaga said.
Fuji Heavy projects a second straight year of record operating profit for the current business year to March 2014 on the back of solid U.S. sales and a weaker yen.
The rosy outlook has helped make the company's shares the best performing stock among auto makers in the Tokyo market, even though it is the smallest Japanese car maker by volume.
Its shares closed down 3% at ¥2,453 ($24.36) in trading in Tokyo on Thursday.
The firm's efforts to focus more on the U.S. market in the past decade are helping build extra momentum on top of the solid resurgence in the overall market.
Enlarge Image
image
image
AFP/Getty Images
The 2014 Subaru XV Crosstrek Hybrid
The Subaru maker now develops vehicles to better meet American customers' tastes by making them wider and roomier. It is also enhancing sales networks in Southern states where sales have been relatively weak.
Its latest growth strategy for the market was outlined earlier this month. It said it would increase annual production capacity by 100,000 vehicles to 300,000 at its plant in Indiana by 2016.
However, the latest measure won't help the company meet potential demand over the coming months, the top executive said.
The car maker has been working on improving its supply of vehicles in recent years. Its U.S. inventories increased to a 40-day supply from 18 days at the end of 2011, but still well below the U.S. car industry average of around 60 days.
But it will be hard to raise its Forester production in Japan anytime soon as its domestic plants are operating at full capacity, Mr. Yoshinaga said. Inventories for the Forester SUV in the U.S. stand at a 16-day supply.
America is Running Out of Subarus - WSJ (http://online.wsj.com/article/SB10001424127887324682204578514992711813694.html)
Not sure if that link will work.
TOKYO—Surging U.S. demand for some Subaru vehicles could lead to dealer shortages if trends continue, the chief executive of the Japanese auto maker said on Thursday.
A 25% year-over-year leap in April U.S. sales and a 17% gain for the first four months have Fuji Heavy Industries Ltd. 7270.TO -3.18% now expecting sales for 2013 to exceed its 380,000 vehicle U.S. sales target for the business year ending in March 2016, CEO Yasuyuki Yoshinaga said in an interview.
His optimism underscores the company's growing success in the U.S., where it now logs about half its global sales and where it scored a fifth straight year of improved sales in 2012.
[image]
The CEO said the car maker may not be able to take full advantage of strong demand for a compact sport-utility vehicle because of its relatively limited production capacity. The redesigned Forester could reach 10,000 vehicles this month, above a monthly target of 8,000, but only if the company can build enough, he said. It ships all the SUVs from Japan.
"If this situation persists, we'll face a supply shortage," Mr. Yoshinaga said. Even if dealers want more there is little the company can do soon, he said.
This year's initial Subaru sales target in the U.S. represented an 8.6% increase over 2012. But the 17% rise in sales to 125,470 vehicles for the first four months of this year strongly indicates this year will be a banner year for Fuji Heavy. Sales in April were particularly strong thanks to the launch of the remodeled Forester small sport-utility vehicle in March.
The company "will have to set a new target as we are likely to hit" the current goal for the U.S. this year, Mr. Yoshinaga said.
Fuji Heavy projects a second straight year of record operating profit for the current business year to March 2014 on the back of solid U.S. sales and a weaker yen.
The rosy outlook has helped make the company's shares the best performing stock among auto makers in the Tokyo market, even though it is the smallest Japanese car maker by volume.
Its shares closed down 3% at ¥2,453 ($24.36) in trading in Tokyo on Thursday.
The firm's efforts to focus more on the U.S. market in the past decade are helping build extra momentum on top of the solid resurgence in the overall market.
Enlarge Image
image
image
AFP/Getty Images
The 2014 Subaru XV Crosstrek Hybrid
The Subaru maker now develops vehicles to better meet American customers' tastes by making them wider and roomier. It is also enhancing sales networks in Southern states where sales have been relatively weak.
Its latest growth strategy for the market was outlined earlier this month. It said it would increase annual production capacity by 100,000 vehicles to 300,000 at its plant in Indiana by 2016.
However, the latest measure won't help the company meet potential demand over the coming months, the top executive said.
The car maker has been working on improving its supply of vehicles in recent years. Its U.S. inventories increased to a 40-day supply from 18 days at the end of 2011, but still well below the U.S. car industry average of around 60 days.
But it will be hard to raise its Forester production in Japan anytime soon as its domestic plants are operating at full capacity, Mr. Yoshinaga said. Inventories for the Forester SUV in the U.S. stand at a 16-day supply.