A lot of people do not know that Subaru is only a subsidiary company of Fuji Heavy Industries (FHI), a company that is mainly involved in industrial products like construction equipment and generators. As the company's 100th anniversary approaches fast, massive changes are about to be made as the brand Subaru will soon be playing an even bigger role.
The Coming Changes
Automobile Magazine reported that the parent company of Subaru, Fuji Heavy Industries (FHI), will start focusing more on automotive as it is set to terminate its business in the industrial products market. Productions of engines for industrial and agricultural purposes and vehicles like snowmobiles and ATVs for powersports will soon end. It was stated in the same report that this change will take effect on Sept. 30, 2017. However, some engine production will become part of a joint venture and will be transferred to China.
The company name will also be changed from Fuji Heavy Industries to "Subaru Corporation" as reported by CarBuzz, but this is not to take effect until April 1, 2017, which happens to be the 100th year anniversary of the company. It was also stated that one of the reasons for the name change is due to Subaru's global auto sales that nearly reached one million, a first for the company that happened this year.
The Prominence 2020
The Prominence 2020 is a plan by Subaru where they are looking to hit sales of 1.1 million vehicles by year 2020. For this to happen, the car maker needs to increase sales by 25 percent in the U.S. where it plans to introduce a seven-seat SUV and a hybrid plug-in vehicle to help the sales go higher.
Automobile Magazine said that this mid-term management plan has already been announced in 2014 where it was said that among its main objectives is to enhance the Subaru brand by making more budgets available for the business' product development and engineering divisions. According to FHI, the goal to enhance the Subaru brand will result to "even greater sustainable growth."
Beginning Of Something Great
American consumers may look forward to the beginning of something great. Subaru has already started manufacturing the Impreza stateside and with the changes coming, consumers in the U.S. are definitely in for a treat.