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Subaru's fortunes sinking - can they turn it around?

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  • ateixeiraateixeira Member Posts: 72,587
    Subaru does have it, just not on the GT, which puts shift buttons for the SportShift in that location.

    But a lot of models do offer that feature.

    I think that's fine - the GT is more driver-oriented and can do without that luxury touch.

    -juice
  • stickguystickguy Member Posts: 53,389
    still, it's easier for me to justify buying a car when I don't really "need" one if I don't have to make compromises.

    And I'm sure that the 5 speed manual doesn't need the space for shift buttons! Actually, that's a dumb use of the real estate.

    IMO, after the first few days, hardly anyone uses the buttons or other manumatic feature. And on the very rare occasion that you do want it, it is easy enough to use the shift lever.

    But, most people use the radio every day, and adjust it quite frequently, so radio buttons actually have some practical value.

    2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.

  • ateixeiraateixeira Member Posts: 72,587
    But then that would be like admitting that GT owners are not true enthusiasts, who turn the radio off and listen to the sweet growl of the engine! ;)

    You're right about the manual trannys, though.

    -juice
  • varmintvarmint Member Posts: 6,326
    I know you're kidding, but... Even the S2000, which has the whole radio within 6 inches of the steering wheel, has redundant controls. And the S2K is as performance oriented as any other car on the road.

    I wouldn't consider the omission of these controls a big issue. This is a very nit-picky thing. But, if their plan is to move forward with a premium image, little things do count.
  • rshollandrsholland Member Posts: 19,788
    As juice said, these radio steering wheel contols are standard on Subies up-market models: all Tribecas, all H-6 Outbacks, all Legacy/Outback turbos with automatic trannys.

    I'm sure we'll see this feature trickle down to lesser Subies soon.

    Bob
  • stickguystickguy Member Posts: 53,389
    Any change they will make it by the end of this month when I go shopping? :)

    2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.

  • ateixeiraateixeira Member Posts: 72,587
    Because a recent trend at Subaru is the mid-year update.

    They put a NAV option on the 5 passenger Tribeca models.

    Now they've come out with an Outback 2.5i SE model, SE adding NAV, 6CD, and auto climate control to the base Outback.

    Both were running changes for MY2006.

    This is a welcome trend - they almost always used to add things like this for the next model year. Perhaps they've put some flexible production models in place which allow quicker changes, which I think is a *great* idea.

    Now that the MazdaSpeed MS6 is out, hopefully the Spec B can get a 6 speed to match as a running change this year? That requires re-certification with the EPA so maybe I'm being optimistic.

    -juice
  • dino001dino001 Member Posts: 6,191
    I think it is very optimistic. However, isn't EPA lax for short product lines? I don't know then if all thing like a B-Spec/Legacy STI would lump with other Legacys or not.

    2018 430i Gran Coupe

  • rshollandrsholland Member Posts: 19,788
    Along with the NAV-equipped Outback 2.5 SE, they also added a 2.5 Outback sedan again. Not so sure that was a smart idea, however...

    Bob
  • ateixeiraateixeira Member Posts: 72,587
    Kill the OB sedan already. It's their albatross...

    -juice
  • robr2robr2 Member Posts: 8,805
    Kill the OB sedan already. It's their albatross...

    They have 2 of them??

    Sorry - required pile on the Baja content.
  • ateixeiraateixeira Member Posts: 72,587
    In pure numbers, let's see, 5359 YTD for the Baja, 50075 for the Outback overall, but the sedan has been just 7% of those sales historically, which would put it around 3505.

    Well below the Baja!

    Not only that...the Baja is great PR for Subaru. Why? Because it's the EPA's most fuel-efficient compact truck, so it tops the economical lists every year.

    Meanwhile, the Outback Sedan was the opposite. It got a lot of slack for being a sedan that was qualified as an MPV for CAFE purposes, and brought negative attention for Subaru.

    When you weigh that the Baja has more sales AND acts as a goodwill ambassador, the OB sedan loses big time.

    The title of Dud in the lineup goes to ... drumroll please ... the Outback Sedan.

    -juice
  • robr2robr2 Member Posts: 8,805
    Not only that...the Baja is great PR for Subaru. Why? Because it's the EPA's most fuel-efficient compact truck, so it tops the economical lists every year.

    Step away from the Kool-Aid juice!! It may top the lists but nobody cares - hence it's irrelevant and IMHO is closely on the heels of the Outback Sedan for the Dud title. Except in New England where I see those pretty often - more often than Baja's.

    Go over the the Ridgeline forum - folks over there are calling it a dud because it only sold 30K units so far and Honda has scaled back production by 6%.
  • movedormovedor Member Posts: 65
    Why the base model Outback gets NAV with SE and not the limited? Given that NAV is an expensive addition ($2K), why they are targeting buyers that are going cheap with the base model? I don't understand the logic there.

    I understand why some who wanted luxury would go for 2.5i model because of gas mileage, instead turbo or 3.0 engine. I think the next expensive item in the list of option, after the limited package, would be the NAV.

    Anyhow, anyone knows if it is possible to add the NAV after the fact? Is it available as orderable part for the dealers? I bought the 2006 2.5i limited and would like integrated NAV. I would have bought the 5pass + NAV Tribeca or 2006 VDC, but I didn't like the gas mileage and found the 2.5i has plenty of power already.
  • prosaprosa Member Posts: 280
    As noted in another message, the Outback sedan is even less common than the Baja. A quick inventory search at subaru.com uncovered precisely zero at the three dealers closest to me. It certainly seems like something that could be both useful and different. Why doesn't Subaru produce more, especially in something less than the costly LL Bean trim?
  • rshollandrsholland Member Posts: 19,788
    SOA just announced a 2.5 Outback sedan.

    Bob
  • varmintvarmint Member Posts: 6,326
    http://www.detnews.com/2005/autosinsider/0511/07/0auto-374408.htm

    Looks like Subaru is doing a little work to reduce overhead. Also mentioned is an up to date profit forecast.
  • stickguystickguy Member Posts: 53,389
    at least they are actually expecting a profit. More than some makers can say.

    2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.

  • nippononlynippononly Member Posts: 12,555
    slumping sales as the reason?

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • varmintvarmint Member Posts: 6,326
    Yes, very true. I was just reading about how something like 30% of Chrysler's sales went to corporate and rental leases. They barely make a profit on those sales.

    Subaru is sitting pretty by comparison.
  • robr2robr2 Member Posts: 8,805
    That's gross profit kiddos. Sales less cost of goods sold. Net profit is the important thing - after overhead, interest and taxes.
  • ateixeiraateixeira Member Posts: 72,587
    rob: there is a PR value to having the a vehicle on any "most fuel efficient list", whether or not it sells well.

    Honda keeps the Insight around to maintain the crown, even though it sells in tiny numbers and surely can't be making a profit.

    Do you know how much Toyota would benefit if Honda dropped it? They already get *way* too much credit for the Prius, while they sell far more trucks that are among the worst polluters in the market (Sequoia, Tundra, Land Cruiser, GX470, etc.).

    movedor: they did that because this is now the only inexpensive model to offer NAV, and because it's a very high volume model.

    JDPower says 47% of people will consider NAV on their next car, so it's not just the rich any more.

    Just get a Garmin or Tom Tom, check the NAV threads for details on what's available.

    -juice
  • robr2robr2 Member Posts: 8,805
    rob: there is a PR value to having the a vehicle on any "most fuel efficient list", whether or not it sells well.

    That is true but how many people have they told that the Baja is on that list? Until you mentioned it, I'd never heard of that. Good information has to be shared in order for it to have any effect.
  • ateixeiraateixeira Member Posts: 72,587
    It's the EPA's list, but CR also put Baja on the top of their list in the Annual Auto Issue.

    -juice
  • varmintvarmint Member Posts: 6,326
    I think there's probably a big difference between having the most fuel efficient vehicle on the road (period) and having the most fuel efficient vehicle within a class of vehicles not generally shopped for fuel economy.

    I don't doubt that the Baja gives Subaru some positive PR for its press on this issue. But I have doubts that PR alone is enough to justify the vehicle against poor sales.
  • ateixeiraateixeira Member Posts: 72,587
    But I'm merely saying that the Baja should not be the first one on the chopping block.

    Obviously it would be 2nd. :D

    -juice
  • varmintvarmint Member Posts: 6,326
    Fair enough.

    Wonder if the sales of either vehicle are any better in Canada?
  • ozman62ozman62 Member Posts: 229
    is no longer available in Canada, not sure about Baja. :confuse:
    Owen
  • ateixeiraateixeira Member Posts: 72,587
    They probably sold 3. But that's more than 100% better than the OB sedan. ;)

    -juice
  • jeffmcjeffmc Member Posts: 1,742
    I thought the article was unclear. The story says it's FHI that's reducing its workforce by 5%. Do they really mean it's Subaru's workforce being reduced, or is this cut spread throughout FHI? Who knows. Also, it's pretty hard to say whether they refer to Subaru Global, Subaru of Japan, or what. At least it's nice to see it's being done through voluntary retirement.
  • robr2robr2 Member Posts: 8,805
    At least it's nice to see it's being done through voluntary retirement.

    Last time I checked, retirement is supposed to be voluntary!! :D
  • ateixeiraateixeira Member Posts: 72,587
    Get out of here you geezers!

    Oops, I mean, are you ready to retire, sir?

    At 37 I'm ready for early retirement. ;)

    -juice
  • jeffmcjeffmc Member Posts: 1,742
    If you're an employer, I guess that's one way to get around age discrimination and higher medical costs.

    There's a fellow I work with who took a voluntary departure incentive a few years ago, and has kept coming back to fill in when asked. So far this year he's worked over 200 days - practically full-time! It's a pretty sweet deal when you can get paid to leave your job, and then get paid again to come back. :)
  • movedormovedor Member Posts: 65
    movedor: they did that because this is now the only inexpensive model to offer NAV, and because it's a very high volume model.

    JDPower says 47% of people will consider NAV on their next car, so it's not just the rich any more.


    I still don't get it. Why not offer NAV in the 2.5i Limited as well? Isn't the limited model where they have higher profits? Adding NAV there would make a few extra bucks more for them. It sounds to me one of those arbitrary decisions based on market studies that a wide open to interpretation.

    Just get a Garmin or Tom Tom, check the NAV threads for details on what's available.

    Yes, yes, but I don't want to carry in and out of the car every time I park on the street, also those power cords are pretty annoying. They get in the way. I want integrated in the panel, so doesn't attract burglars.

    I was kind of hoping I could order the NAV as replacement unit for a defective one. Once a saw somewhere in a web site a very long list of replacement parts, small and large, for subarus. Maybe NAV could be there?
  • rshollandrsholland Member Posts: 19,788
    I've said this many times before, and that is that NAV units will soon become as popular as cell phones. They are going to become the next "must-have." Therefore the sooner Subaru offers this feature on every car they sell, the better off everyone will be.

    I'm old enough to remember when power steering, power brakes, electric windows and air conditioning were all options even on luxury cars (BTW, it wasn't that long ago). Now those features are all standard on most cars, and they are all standard on every Subie sold here. The same will happen with NAV—and the sooner Subaru realizes that, the better.

    Bob
  • dino001dino001 Member Posts: 6,191
    It all depends. Remember phones installed in luxury cars? Where are they now? Sometimes aftermarket takes care of it better than manufacturers. There may be more cheaper portable nav units. Of course those installed in cars by manufacturers offer better integration and multifunctioning with other systems, like climate control etc. I just say, we shall see.

    2018 430i Gran Coupe

  • varmintvarmint Member Posts: 6,326
    Right. The cutting edge of technology is also called the bleeding edge. You can get burned by jumping too fast onto the latest and greatest gismos.
  • rshollandrsholland Member Posts: 19,788
    Maybe so, but I think this is a pretty safe bet.

    Bob
  • kyfdxkyfdx Moderator Posts: 265,955
    I agree.. at some point, almost every car will at least offer it, and depending on the price point of the car, you'll see much higher acceptance rates... You can even get it on the new Civic..

    The only thing holding it back right now, is the high cost.. When the manufacturer's think they can sell enough to make it worth their while, you'll see it in a lot more cars, and hopefully at a lower price point.. ($995?)

    regards,
    kyfdx
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  • varmintvarmint Member Posts: 6,326
    I agree that it is a "safe bet". But a bet is still a gamble.

    Here's what I expect will happen. Anybody here ever read Net Force? It's a spin-off series of books based on a concept by Tom Clancy. Anyway, it's set a decade or so into the future. Everybody walks around with this fictional thing they call a VIRGIL. It's a combination cell phone, GPS, camera, PDA, i-Pod, Gameboy, chain saw, toothbrush, etc.

    Soon manufacturers will simply offer a screen, with some programmable controls, and an input jack. You'll plug your device into the thing and be able to display all your information on the built-in screen.
  • rshollandrsholland Member Posts: 19,788
    Exactly. Price is key. here's my take:

    We will start seeing NAV units with different levels of complexity. I see NAV in entry-level cars sans trip computers and any other extranious gismos; just the basic NAV unit, nothing more.

    Not only does the Civic now offer NAV, but so does the Mazda3. More carmakers are sure to do the same.

    I think as real-time traffic reports become more common and more accurate, this will make NAV units useful 24/7. Acura already has this feature in their new RL's NAV unit, and it's standard BTW. I think this is just the tip of the iceburg, as more (and better) traffic report NAV units are sure to come.

    Bob
  • robr2robr2 Member Posts: 8,805
    I think as real-time traffic reports become more common and more accurate, this will make NAV units useful 24/7. Acura already has this feature in their new RL's NAV unit, and it's standard BTW. I think this is just the tip of the iceburg, as more (and better) traffic report NAV units are sure to come.

    And that my friends is the holy grail to some: a continuous stream of revenue. It may be more profitable in the long run to decrease or subsidize the cost of the equipment in order to ensure a regular revenue stream from a subscription.
  • jeffmcjeffmc Member Posts: 1,742
    This should help bring some cashflow to FHI. Let the rumors fly! :)

    NAGOYA (Nikkei)--Toyota Motor Corp. (7203) plans to contract out to Subaru maker Fuji Heavy Industries Ltd. (7270) the full redesign of an existing model, possibly a sporty subcompact, with the aim of rolling out the remodeled version in two to three years, The Nihon Keizai Shimbun learned Tuesday.

    Here's a link, but you need a subscription (which I don't have) to view more.
    http://www.nni.nikkei.co.jp/CF/FR/TNKS/nikkeinews.cfm?GenreID=3&PageSet=1
  • rshollandrsholland Member Posts: 19,788
  • varmintvarmint Member Posts: 6,326
    Based on rock-solid insider information I have [read: wild guess]... Toyota is turning over the Matrix. It's an existing model, based on a proven Toyota platform, with features which are not dissimilar to what Subaru does best (small wagon, AWD, etc.). Because it's not a high volume seller, the "risk" of turning it over to FHI is acceptable.

    Makes sense, right? So where's the sinister part?

    Toyota isn't going to let Soob engineers transform the whole platform to make it a symmetrical, boxer-powered vehicle. It's going to remain a transverse I4 which can be built on the same assembly line as other Corrolla-based models. And I'm sure Toyota will have a long list of requirements to reign in the Subaru designers.

    It's all a subversive plot to get Subaru engineers to appreciate something other than their own designs. Toyota = Borg :zoiks:

    http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/177704/1/.html
  • rshollandrsholland Member Posts: 19,788
    Subaru has a long history in making transverse-engined vehicles. The tiny 660cc Japan-only Sambar truck, Pleo, R1, and R2 cars are all built that way, and they are offered in both FWD and AWD. Same with the slightly larger AWD G3 Justy, which is sold in some European markets.

    If the vehicle's overall length is the prime consideration in terms of design, then the transverse-engine is a better solution than the boxer engine, which is rather long, as it sits in front of the front axle.

    Bob
  • nippononlynippononly Member Posts: 12,555
    Subaru will develop the next Matrix, which it will then share with Toyota as both Toyota and Subaru models? What am I missing here? What on Earth does Subaru need with ANOTHER small-medium wagon? Or would it be expected to replace the Impreza (highly unlikely)? Or would Subaru merely fill the role of a subcontractor, developing a model for Toyota so that Toyota, which can't spare the personnel, doesn't have to do it itself?

    If it is that last, I kinda like the idea. Subaru overengineers things more than Toyota does these days, and Toyotas have become a little "thin" as a result. Subaru could do lots to improve the Matrix. Imagine a rally-ready Matrix (with a more capable engine this time, ahem, Toyota!)! I like that idea. :-)

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • robr2robr2 Member Posts: 8,805
    Based on rock-solid insider information I have [read: wild guess]... Toyota is turning over the Matrix.

    Wouldn't it be ironic if this was actually the plan? Subie engineers would then have to sit down with GM engineers because the changes would apply to the Vibe and the Voltz!!!
  • rshollandrsholland Member Posts: 19,788
    We don't know what vehicle this will be. It's supposed to be a Toyota, not a Subaru. Does that not mean there will be a Subaru spin-off? Who knows?

    Bob
  • varmintvarmint Member Posts: 6,326
    "Subaru has a long history in making transverse-engined vehicles. The tiny 660cc Japan-only Sambar truck, Pleo, R1, and R2 cars are all built that way, and they are offered in both FWD and AWD. Same with the slightly larger AWD G3 Justy, which is sold in some European markets."

    You're no fun. Way to ruin a perfectly good conspiracy theory. :P

    Robr2 - Too funny. You're right about the GM connection.
This discussion has been closed.