
In the Brexit-obsessed UK there are clear signs of an automotive slowdown. Manufacturers have announced closures and layoffs are scheduled due to not just local political issues, but an expected global contraction. The economy may appear to be more robust over in the USA but giants such as Ford are still pulling back, with white-collar redundancies aplenty.
Shifting Sands
Plenty of forces are at work here and consumer trends are certainly playing their part. After all, buyers seem to be shifting their focus away from the traditional passenger car and toward the crossover market and this has caught many of the major manufacturers on the back foot.
On the up
Still, wherever there is a threat there may also be an opportunity and one of the smaller manufacturers has taken full advantage of this shift in the consumer market. Subaru (once regarded as a minor player in the American market) has grown significantly since the last recession and has posted record sales in each of the last 10 years.
Beating Expectations
While Subaru may still have a long way to go to catch up with the likes of GM, Ford and FCA, it has still comfortably beaten analyst expectations. While analysts once regarded it as a niche brand catering to rugged individualists in the Pacific Northwest or New England, it is now actively engaged in poaching “big three” customers from the American heartland.
In Demand
Chalk some of this down to having the right product at the right time. Subaru has always relied on models that compare favourably to the crossover and SUV demanded by today’s American consumer. Further, the Japanese manufacturer is known for its reliability, capacity and safety and these factors are becoming increasingly relevant in the emerging marketplace.
Brand Loyalty
But there may be even more to Subaru than meets the eye. The company has gone out of its way to connect with its market and trumpets an innovative approach to marketing. It tries to focus on the “love” between the owner and their car and this seems to work in terms of fostering brand loyalty.
Feel the Love
As part of this approach, the company makes a charitable donation to a cause of the buyer’s choice, whenever a new vehicle rolls off the lot. Could that help explain why the company can boast industry-leading performance in terms of year-on-year sales growth? While other manufacturers may face stagnation or worry about tepid returns, Subaru enjoyed the biggest percentage increase amongst the top 10 selling US brands, in the year ending October 2018.
Fitting in
While the scene in many corporate boardrooms may be morose, senior Subaru management figures appear to be rubbing their hands in anticipation. Their direction appears to be in lockstep with the American consumer and if “niche” really is the new byword in the US market, Subaru will certainly be ready.
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