Subaru global profits fall short of targets

[BMWDave]

Subaru adjusts U.S. goals again as global profits fall short of targets
JAMES B. TREECE | Automotive News
Posted Date: 5/18/05
TOKYO -- Subaru is pushing back its U.S. sales targets - again.

Three years into a five-year strategic plan, Fuji Heavy Industries Ltd., maker of Subaru cars, is far short of its targets for sales, income and other indicators of performance.

Its U.S. vehicle sales have fallen below target each year. In the fiscal year that ended March 31, sales were about 10 percent shy of the plan. The first year of the plan ended March 31, 2003.

The company scaled back its goals while saying that global earnings fell sharply in the latest fiscal year. The drop was the result of a less profitable mix of sales, delays on an airplane project and compensation to suppliers after Subaru revised plans for developing a car.

Fuji now sees its global net income in the fiscal year ending March 31, 2007, the last year of the five-year plan, at ?27.0 billion, or $251.4 million at current exchange rates. That is 43.8 percent below the original plan's goal of $447.0 million.

The company now predicts global revenues will be $14.71 billion in the year ending March 31, 2007, 8.1 percent off the original goal.

Subaru also has missed sales goals in North America. In June 2001, the company had set a North American goal of 285,000 sales in the fiscal year that ends March 31, 2006. That was later reset to 250,000. Now the carmaker predicts its North American sales that year will be 201,900.

Subaru's unit sales were flat in the United States and fell in Japan in the January-March quarter, compared with first quarter of 2004.

But after Subaru launches the B9 Tribeca SUV in the summer, it expects total U.S. sales to rise 9.8 percent to 117,600 in the six months from October through March.

Net losses at Subaru of Indiana Automotive Inc., a plant in Lafayette, Ind., are seen widening in 2005 to $207 million from a loss of $74 million in 2004.

In the latest fiscal year, Fuji's net income fell 52.8 percent to $169.9 million. Operating profits dropped 16.5 percent to $391.3 million.

Subaru accounts for about 90 percent of Fuji's global revenues.

[Secret Chimp]

Hmm... Subaru is partly owned by GM    

[BMWDave]

Hmm... Subaru is partly owned by GM  

true-Cadillac is also owned by GM and could be going down

Subaru should be doing better.  They have great cars at ok prices.  

[giant_mtb]

Hmm... Subaru is partly owned by GM  

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

[BMWDave]

Hmm... Subaru is partly owned by GM 

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

They are 33% owned by GM, I believe.

[Secret Chimp]

Hmm... Subaru is partly owned by GM 

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

They have some level of influence; I think they used the WRX's steering in the patched-together Solstice concept, and I doubt the Saabaru 9-2x was Subaru's idea.
I'm more worried about what this Alfa Romeo styling guy is going to do to the brand; the zonker-nose with wings front end theme Subaru is apparently going to adopt doesn't really work very well.

[BMWDave]

Hmm... Subaru is partly owned by GM?

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

They have some level of influence; I think they used the WRX's steering in the patched-together Solstice concept, and I doubt the Saabaru 9-2x was Subaru's idea.
I'm more worried about what this Alfa Romeo styling guy is going to do to the brand; the zonker-nose with wings front end theme Subaru is apparently going to adopt doesn't really work very well.

It looks hideous, IMO.  And a lot of other people think so too.  It looks like Subaru will become the Aztek of the car world.

[giant_mtb]

Hmm... Subaru is partly owned by GM?

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

They have some level of influence; I think they used the WRX's steering in the patched-together Solstice concept, and I doubt the Saabaru 9-2x was Subaru's idea.
I'm more worried about what this Alfa Romeo styling guy is going to do to the brand; the zonker-nose with wings front end theme Subaru is apparently going to adopt doesn't really work very well.

The grille is supposed to look like a fuselage and wings...to relate back to Subaru's air industry settings...or somethin like that...but it's also just like AR...so yeah.

[BMWDave]

Hmm... Subaru is partly owned by GM?

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

They have some level of influence; I think they used the WRX's steering in the patched-together Solstice concept, and I doubt the Saabaru 9-2x was Subaru's idea.
I'm more worried about what this Alfa Romeo styling guy is going to do to the brand; the zonker-nose with wings front end theme Subaru is apparently going to adopt doesn't really work very well.

The grille is supposed to look like a fuselage and wings...to relate back to Subaru's air industry settings...or somethin like that...but it's also just like AR...so yeah.

This airplane design has to go.  It looks bland, bloated, and it seems to be tacked on to vehicle as an afterthought.

[giant_mtb]

Hmm... Subaru is partly owned by GM?

GM doesn't really have much say in the cars though, do they?  Don't they just like have ownership stock or something?

Either way I think Subaru is doing better than some domestic brands like GM and Ford who are falling deeper...(or maybe I'm wrong...I'm not much a financial expert)

They have some level of influence; I think they used the WRX's steering in the patched-together Solstice concept, and I doubt the Saabaru 9-2x was Subaru's idea.
I'm more worried about what this Alfa Romeo styling guy is going to do to the brand; the zonker-nose with wings front end theme Subaru is apparently going to adopt doesn't really work very well.

The grille is supposed to look like a fuselage and wings...to relate back to Subaru's air industry settings...or somethin like that...but it's also just like AR...so yeah.

This airplane design has to go.  It looks bland, bloated, and it seems to be tacked on to vehicle as an afterthought.

Very true.  They need to either just keep/modify the current design of just come out with a different new one.  The plane idea doesn't look very sporty or anything....it's just bland.

[Why?]

What Subaru needs to do is advertise more.

They can't sell cars to people who don't know they exist.

[giant_mtb]

What Subaru needs to do is advertise more.

They can't sell cars to people who don't know they exist.

Yeah..very true.  The only ads I ever see (rarely) are for the WRX (with Lance Armstrong...still!) and the Outback...  I never see anything else, and I see a Subie ad about 3 times a month...

[ifcar]

I assume the Tribeca will be heavily marketed.  

[giant_mtb]

Hopefully...

ANY marketing would help their sales a bunch...


There's a 2002 Impreza Sedan MT with 47,423 miles with 6-CD changer and radar detector for 14,200 about 3 miles from my house...    If only I was 18 right now and the car only cost 9,000...I'd be writing up a review right now! or driving, actually.    

[Secret Chimp]

Hey, I live in the Northwest. I see Subarus and Subaru ads every single day =P

[ifcar]

Hey, I live in the Northwest. I see Subarus and Subaru ads every single day =P

Perhaps they only care about their largest markets: the Northeast and the Northwest.  <_<  

[giant_mtb]

Hey, I live in the Northwest. I see Subarus and Subaru ads every single day =P

:angry:   i see very few...I don't like you anymore!  :P  

[Speed_Racer]

They are in abundant supply here in the Northeast; easily one of the most popular car brands up here. You just can't find many small cars with a proven AWD system.

[giant_mtb]

They are in abundant supply here in the Northeast; easily one of the most popular car brands up here. You just can't find many small cars with a proven AWD system.

Subaru's are the most popular cars/small SUV's around here as well...but trucks and mid to large SUV's dominate our market.  (obviously)  But about 75% of all the cars probably in my area are either FWD or AWD/4WD....  

[Raghavan]

With the ugly new grille that they're having as the corporate grille, i think sales are going to plunge after all the cars have been redesigned.

[BMWDave]

With the ugly new grille that they're having as the corporate grille, i think sales are going to plunge after all the cars have been redesigned.

Perhaps they will see their mistake and the new design theme will only be used on the Tribeca.  If it sells, then I guess they will design more cars like that.  If it doesnt sell, then I dont think they will continue their design theme.

[Raghavan]

With the ugly new grille that they're having as the corporate grille, i think sales are going to plunge after all the cars have been redesigned.

Perhaps they will see their mistake and the new design theme will only be used on the Tribeca.  If it sells, then I guess they will design more cars like that.  If it doesnt sell, then I dont think they will continue their design theme.

Maybe, but they'll also have to hold off redesigning their other cars until they get a good idea on how the Tribeca is doing.

[giant_mtb]

As long as they don't ruin the cars completely I'm ok...especially the grille.    

[Raghavan]

As long as they don't ruin the cars completely I'm ok...especially the grille.  

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

[giant_mtb]

As long as they don't ruin the cars completely I'm ok...especially the grille. 

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

I think you're right...    :ph34r:  

[Raghavan]

As long as they don't ruin the cars completely I'm ok...especially the grille. 

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

I think you're right...    :ph34r:

I think Subaru's going to go down the path that BMW's on right now.  

[BMWDave]

As long as they don't ruin the cars completely I'm ok...especially the grille.?

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

I think you're right...    :ph34r:

I think Subaru's going to go down the path that BMW's on right now.

If you didnt notice, BMW is selling more cars than ever, and many people are warming up to their designs.  They are improving in quality also.  So I would be happy if Subaru moved in the same direction as them.

[Raghavan]

As long as they don't ruin the cars completely I'm ok...especially the grille. 

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

I think you're right...    :ph34r:

I think Subaru's going to go down the path that BMW's on right now.

If you didnt notice, BMW is selling more cars than ever, and many people are warming up to their designs.  They are improving in quality also.  So I would be happy if Subaru moved in the same direction as them.

Troll.  

[BMWDave]

As long as they don't ruin the cars completely I'm ok...especially the grille.?

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

I think you're right...    :ph34r:

I think Subaru's going to go down the path that BMW's on right now.

If you didnt notice, BMW is selling more cars than ever, and many people are warming up to their designs.  They are improving in quality also.  So I would be happy if Subaru moved in the same direction as them.

Troll.

No I'm not...you can find out those things for yourself. :blink:    

[Raghavan]

As long as they don't ruin the cars completely I'm ok...especially the grille. 

The current cars look great. i don't see one that i don't like, but with the arrival of the Tribeca, and the new grille, i think subaru's in for some ugly days.

I think you're right...    :ph34r:

I think Subaru's going to go down the path that BMW's on right now.

If you didnt notice, BMW is selling more cars than ever, and many people are warming up to their designs.  They are improving in quality also.  So I would be happy if Subaru moved in the same direction as them.

Troll.

No I'm not...you can find out those things for yourself. :blink:  

Dave, why can't you ever see that I'M JUST JOKING ????    
BTW, i'm not joking now. <_<