When you visit Subaru dealerships, you may not be aware that Subaru is simply one brand of a larger parent company. Subaru has such a high profile from their showrooms and car sales to rally team events; it is easy to forget that the brand is actually owned by FHI (Fuji Heavy Industries). FHI began in 1915 as an aircraft developer, before branching out into designing and manufacturing motor scooters and later vehicles. In recent years, FHI has been focused on industry business including manufacture and repair of generators, agricultural and construction machinery and their components. However, over the last few months, there have been some rumblings that FHI intended to change their focus.
The Hints of Change:
Many industry insiders suggested that change was afoot several months ago when FHI announced that they would be changing their name as of April next year. The board of directors of the corporation announced that FHI intended to fully integrate the Subaru business with all areas of the industrial trade, together with a name change to Subaru Corporation. The plan was called “Prominence 2020” and consisted of two key aspects to enhance the Subaru brand and build a “strong business structure.”
The New Announcement:
The most recent announcement further detailed the plans for “Prominence 2020” and the board has stated that in order to focus on the Subaru brand, FHI intends to kill off their industrial products business. This means that FHI will no longer produce the general purpose industrial, agricultural and construction equipment engines, along with the high-performance engines used for all-terrain vehicles and snowmobiles. This highlights that the primary objective for the Prominence vision is to enhance the growing Subaru brand. Terminating the industrial parts business is set to allow FHI to concentrate their management resources solely on Subaru.
The Implications:
For most of us, the implications of this decision will have little impact. Of course, Subaru dealerships will take on more importance for the brand, but Subaru customers should notice very little change. FHI has already implemented changing the branding on all spare parts; customers may have already noticed that their replacement parts are now branded as Subaru rather than FHI. The sales and production of the FHI industrial products that are currently offered will cease on 30th September 2017. This marks the end of a sixty five year run for the FHI business. It is anticipated that the greater management focus will allow Subaru to go from strength to strength in the global automotive market.
Here in Australia, Subaru continues to hold rankings in the top ten sales figures. Year to date as of October, the brand has shifted 38,969 units, which is an increase of 0.7 percent compared to 2015 and represents a 7.9 percent growth for the year. With the new Impreza sedan and hatch due here before the end of the year, it is anticipated that the brand could claw even higher up the sales rankings and the shift in FHI focus should boost this even further.
If you would like to know more about the current range at your local Subaru dealership, Victoria drivers should contact us. City Subaru is one of the most respected authorised Subaru dealerships, and our sales team are ready to answer any of your queries or questions.
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