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Subaru's fortunes sinking - can they turn it around?
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The new WRX is a perfect example of misjudging customers. While I welcome what they did in terms of comfort, size, and styling (to a degree); the fact is is the car just doesn't generate the same excitement of previous generation WRXs—and that's a HUGE mistake on their part. I fully expect that to be corrected, but it may take a couple of years to do so—and that's flat out wrong. The car should have been properly dialed in from day one. This same complaint can be leveled against any number of new Subaru models. They've got to fix that!
If you or someone were to ask me (the owner of a '06 WRX Limited wagon) if I would prefer a new '08 WRX 5-door over my '06 wagon, I would have to think about it and would probably say, "I think so." That's not the correct answer. The correct answer should be, "Absolutely!"
Bob
I think Subaru will lose many/most of the customers it had before for the WRX. It can only hope, then, to gain as many new customers among people looking for a more "mainstream" ride. It is some consolation that Mitsubishi did the same thing to the new Lancer and Evo, although from purely a styling standpoint, I have to say I would take the Lancer without a second thought of the Impreza.
And I will second dino's thoughts on the Impreza interior. Only I wouldn't be that accepting of it in a $17K car either, but I would accept it as an OK price to pay for the car's other positive attributes.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Bob
Despite all the miscues we discuss - look at the bottom line. Impreza sales are up every month since the new model came out. Some of those months hit all-time sales records for the model.
And this is with no all-weather package, no moonroof, no STI Limited, no WRX Limited.
From the glass-half-full point of view, they cut costs and increased sales.
When they inevitably add those options back, sales may increase even more.
Any how, I still say the Forester is gonna be the model that pays the bills, and early signs are very good:
http://forums.nasioc.com/forums/showpost.php?p=20910788&postcount=718
That's in Japan but keep in mind Subaru sells more cars there than the do in the USA.
Credit Bob for the link.
It used to be that 227 hp in a small car was awe-inspiring.... Back in '02, the entry level BMW 3-series had a rating of 184 hp.. Today, it's 230 hp, and 227 just doesn't raise eyebrows the way it used to..
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2018 430i Gran Coupe
And "biased" argument is simply ludicrous. How many previous generation owners of other brands/models would rather stay with their old car?
2018 430i Gran Coupe
Yes, but not at the expense of all its old customers. There wouldn't be any point to that unless you significantly increase the customer base with the new customers alone, and I don't think there's anyone here or at SOA who thinks they will do that.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I give it anothere three months
At first the people who didn't like it said "I'll give it a month".
Sales have been good despite the doom-and-gloom predictions.
Despite all the controversy over the styling, they made key improvements to the basic chassis and structure. Windows are framed, it got a much more sophisticated rear suspension, a longer wheelbase, etc. All the basic DNA is improved. Side curtain air bags and VDC address the deficit in safety features, too.
Most of the remaining complaints are now an easy fix. Add an all-weather package. Add a moonroof. Add horsepower.
Pretty easy to add.
BMW was brought up, so think about this - they have changed their product cycle so that new engines are introduced not when a new product arrives, but rather staggered, to spark up interest on aging designs.
If the new WRX, blah as some people say it is, it lighting old sales records on fire, and they still have all those easy fixes up their sleeve, then Subaru is in good shape indeed.
Think about it.
BMW didn't have the M3 ready at the 3 series launch. It came later.
Heck, the M3 sedan is still not out (is it?).
If you listen long enough to Edmunds enthusiasts, you would think that every person in the world wanted a de-contented Sport wagon that only came with a manual transmisison and had 700 horsepower.
Yet in the real world about 3 people would buy that.
I'd be one of them.
BTW - I don't need 700 hp and I do want stuff. So STI is not for me - too much hp and too little stuff. And I do understand concept of small volume. But I would be willing to pay reasonable premium for it, e.g. would not mind same price like auto (usually about 1000 less).
2018 430i Gran Coupe
And even giants like Toyota limit your options or how you can combine them.
If Subaru held back a 2nd wave of WRX buyers will come when those features become avaible, and sales rise again, marketing classes will study how that was a stroke of genius.
I may want it all NOW, but I wanted a moonroof (and a diesel/hybrid/high-FE powertrain option) ten years ago. Still haven't been able to wheedle one out of Subaru...and really, what is so darn hard about installing a factory moonroof????
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Clearly Subaru product planners did a better job with the STI than they did with the WRX. Yes, Impreza sales are up, but my guess is most of the increase is due to increased 2.5i and OBS sales, not WRX sales. I'm not saying WRX sales are down—although they may be, as Subaru doesn't break out individual models.
It was a mistake for them not to offer a Limited in both the WRX and STI from day one. It was also a mistake for them not to increase the power on the WRX, even just a little.
You know me and Subaru. I, like a lot of others, are just fed up with their lousy product planning, and poor excuses. The 2008 WRX should be a car that I aspire to—but it isn't. Maybe the 2009 or 2010 model will be that car. I just find the '08 WRX to be extremely frustrating, as it could have been so much better with just a few tweaks. It might be fine for someone who has never owned a WRX, but it's not for existing owners. The new WRX has been universally criticized by the automotive media and WRX fans alike for losing its mojo. Do you honestly think they are all wrong?
Bob
It will always be a letdown for people after that initial car. I'm sure there are folks in the DSM world who cry the same song about what the Eclipse now is, compared to the hey-day of the Eclipse GSX.
Having been in, around and a spent a 1,000 mile trip with a 2008 WRX Sedan 5mt w/updated grille during the 48hrs, I have to say it's a good solid car for the $. Ground breaking? Nope. But the passenger seat is significantly more comfy and roomy than the passenger seats of my legacy wagon, especially the front passenger one.
I'm sure we'll see tweaks filter through and the car will sell well. We'll get more power across the board. I also would not be suprised to see the wagon return with the next gen of legacy.
-mike
Motorsports and Modifications Host
Same with their interior - it would take a real effort to find equally uninspiring interior for $25K+. Even GM and Ford product at that price point is better looking inside (I can't believe I just said it).
There is simply no excuse. :lemon: :lemon:
2018 430i Gran Coupe
As for the grille, it's fixed in the optional one.
-mike
Motorsports and Modifications Host
I'm not looking for a groundbreaking car, just one that moves forward to some degree on all fronts from its predecessor. The new WRX, while clearly several steps forward in many areas, is also a step or two backwards in some key areas.
• No power increase over '07 model. Yes, I know the powerband has been improved.
• Skinnier tires than found on '07 model.
• No moonroof option
• Not as crisp in terms of handling as '07 model.
• No 5EAT option
• Front seats aren't as supportive as those on my '06 model.
• Rock hard sunvisors (mine are nicely padded)
• Some styling details are iffy at best (not impressed by the sport grille either).
For a model that is specifically defined by its performance, many of those items I listed should have been addressed in 2008, not 2009 or 2010.
Bob
The timing was wrong on that one. I'm not sure if they just don't have the supply of 3.6l engines, or what. If they put that in the Legacy, then the WRX could get the Legacy GT's turbo.
I don't think the lack of the Limited models is a big deal because I know they'll have it next model year. There is enough demand for the base models that they haven't needed it yet.
When the Limited comes out, that will offer something new and fresh, probably next model year.
Maybe it's the fact that I am perfectly fine with having the aftermarket address things like leather seats and moonroof options. Seems like many aren't.
Frank swears the Katskins leather on his Forester XT is better than Subaru's leather. The moonroof on our Legacy has a one-touch feature to open or close all the way, and is programmable to close when you remove the key.
I guess some people just aren't into aftermarket upgrades. I am, so I look at the basic goodness of the car itself, not the toppings.
Yes, the new one is generic and boring... still better!!
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This tells me loud and clear WRX sales must be well below the target.They are not ready to admit that yet, hence the lease incentive, usually less widely published, definitely in terms of actual cash reduction (you usually get some low payment figure without big details). This is an obvious effort to pump out the stock without official admittance of a shortfall.
It seems the bleak projections are being fullfilled as we speak. People generally agreed here that 2.5i was a very good deal for the money, but most unhappiness came from WRX. It turned off the current base in hope of gaining wider audience, but 25-30 grand sticker can go only so far if you don't even offer conveniences that are considered basic at mainstream level of that price segment. Ralliart is only going to accelerate that deterioration.
2018 430i Gran Coupe
When it's cash plus low rates, it's hard to calculate the combined value of that incentive, but it's more than $2000.
Keep in mind that WRX went up compared to the outgoing models, too. And like you mention, there is a HUGE price gap between the 2.5i and the WRX, making the former a bargain.
Bob
The 2003 Forester had incentives, as did the 2005 Legacy and Outback. As did the 2006 Tribeca, as did the 2008 Tribeca...
This falls under standard procedure, basically.
I do wish they would just set prices lower to begin with, perhaps even Scion style or the way Saturn does.
2005 incentive on Legacy/Outback was not 2 grand from the get go. Plus it was after "upmarket move" fiasco, where the prices went up just too much.
When you say "they corrected the price" - that means they messed up their marketing research (if they even made one) big time. First year and over two grand "correction" ????
2018 430i Gran Coupe
So yes.
Didn't they have a basic model before that stickered under $25K? Seems like with the equipment it has (and considering that the drivetrain is unchanged from the '07) the base WRX NOW should be under $25K. Then with deals it would sell at around $22K. If it really has a $2K cash incentive right now than I guess that amounts to the same thing, but really, why not just skip the price increase for the '08 until they had some substantial updates to offer?
The 2.5i base and premium package are the deals of the Impreza line, no question about that. Even the OBS is getting into overpriced territory: more than $21K now for what is basically an Impreza Premium with 17" alloys (replacing 16" alloys on the Premium) and two-tone paint?
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
So they originally thought that minor engine tweak, new styling, new sponge suspension and granny steering, better (but still far from great and subpar for the price segment) interior design and a few things that Juice or Mike would be happy to point to you, were worth 2 grand. Apparently not so. So far the 1.5-2.5 grand is on the lease only, so there is no official admission of defeat, but I see regular customer cash coming soon. Perhaps not 2 grand for starters.
2018 430i Gran Coupe
Do that, split the difference and start the car at $26K, and eliminate Premium Package, and they will have made a start on the road to increased sales I think. You have to think: the MS3 and GTI/Jetta GLI, not to mention the C30 2.0, are all at or below this price. All of them have a much much nicer interior, similar or increased power (and the VW has that instant-on torque from the 2.0T), and more features for the money. All WRX has is the AWD. Sure, AWD costs money, but it is not the mainstream in this segment, and if Subaru is chasing the mainstream with the new WRX, they will have to ante up or lower the price a ways.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
The segment is small, but very competitive - I just don't think Subaru noticed it's not '02. There is a lot they could do, but if they wait until 2010, it will be too late. They need summer intro of both "Special Edition" and "Limited" packages that would significantly increase content of both base and premium trims at something like few hundred bucks.
2018 430i Gran Coupe
In reality VDC is better because now both axles are managed. Before only the rear axle was managed, with the VC. On the track the viscous coupling was not useful. It was useful in snow, but VDC doubles that usefulness.
The "few things" that I'm happy to point out include the framed windows, the more sophisticated rear suspension, and the improvements to the interior.
People are making a big deal about 10mm narrower tires. Okey-dokey. That's about 1/3rd of an inch.
4EAT is lame, the only major fumble here. But nobody buys automatic WRXs, even in the USA they want manuals. Plus a CVT is on the way.
It's not so much the WRX letting us down, as much as it is the competition stepping up. Especially the MazdaSpeed3, which really only lacks AWD. The C30 doesn't come as a 4 door. The 4 door GTI is overpriced when you load it up. The R32 can't hang with the STI.
I'll comment on pricing in my next post, to maintain the threads...
The real problem is that they updated the looks, the steering, and the suspension, and left everything else just about alone. And everything else wasn't really up to snuff any more even in '07. I agree with you: Subaru didn't notice that it's not 2002 any more. And of course, back in 2002 Subaru had only just got done noticing it wasn't 1995 any more.
BTW, I think the SRT4 doesn't just RIVAL WRX for cheapness inside, it far and away exceeds WRX on this count. OMG, I don't know why anyone buys that car with so many others in the same price range.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I just looked and the 2.5i runs about $16-17k, with the Premium at $18k even with the automatic. That's the bargain, no doubt about it.
The OBS adds a roof rack, too, plus the wheels and the paint. About $19-20k. Given the mostly cosmetic upgrades, the 2.5i Premium is arguably the better value.
A WRX premium runs $26k right now. My guesstimate was right on - that is $8 grand more than the 2.5i Premium.
I love power as much as the next guy, but c'mon, that's insane. I could buy the 2.5i Prem and pay cash for my Miata ($7800 when I bought it), and have a spare sports car in my driveway.
So incentives for the WRX do not surprise me. They have PLENTY of wiggle room when they are an $8000 step up in price from the 2.5i Prem models.
Heck, they could toss in a $4000 incentives on the WRX Premium and still have the same profit margin as the value-priced 2.5i P.
But juice, all of these competitors we mentioned, except perhaps the new Lancer Ralliart, were available for Subaru to take notice of long before the new WRX came out. Everyone else got lots better in the last few years, but Subaru just updated its WRX and DIDN'T get a lot better, even though the price went up. Isn't that the same thing - the WRX letting us down?
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Funny thing is, I flash back to 2002, and people were screaming "the bug eyes make it look like a Neon" and ranting and raving about how cheap the interior bits and pieces were. Thin paint. Cheap carpets. Cheap frameless windows that made wind noise galore.
Is it nostalgia fogging our memories?
Back in 2002 I remember just as much criticism as there is today, if not more. The only difference is a now-established base of WRX owners that complain more vocally.
Well, my memory isn't fogged, I don't think. Sure, I remember those complaints, and the real problem is Subaru is always below-average in this regard. These days, so is Toyota. But big Toyota dealers can afford to discount the HELL out of new Toyotas to compensate, and most Subaru dealers can't do the same with Subarus.
And does Subaru really want to become the "big discounts and incentives" brand? That is reminiscent of the domestics the last 15 years, and it hasn't led to good things for them...
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I say "felt" because crash tests show the structure was rigid. It just felt cheap to a lot of people.
The ride could also improve, no doubt the very bare-bones strut suspension limited them in that regard.
Toss in complaints about how other cars in that price range had stability control.
Result? Subaru adds stability control, swaps out a more sophisticated suspension that handles just as well but rides a lot better, and window frames to quiet the wind noise.
They basically addressed all the major things that people complained about in 2002.
2018 430i Gran Coupe
Perhaps, but back then they were alone in segment they just invented. When I bought mine, I had nowhere else to go. So all was quickly forgiven.
Today they are in a small but crowded market - nobody should expect such forgiveness. If a tree fell on my car today, new WRX needs to get in a long line for my money - and they are very unlikely to earn it. Heck - 3 grand overallowance on the GTP program combined with VIP pricing was not enough to "get some numbers" from the dealer after a brief test drive... He asked "is there anything we could do...", I said "No - without product the best deal is not a deal".
:lemon:
2018 430i Gran Coupe
Seriously though, all this negativity is just depressing.
Do you people have ANYTHING good to say about Subaru?
-mike
Motorsports and Modifications Host
If feature content and interior quality are low for the price, it's hard to sell cars.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
A lot of their products have a great potential - but their product planning and marketing teams may be arguably worst in the country. Last three years is a barage of one poor decision after another. Wrong packaging, misplaced competition targets, ditching their core audience for some elusive "mainstream" gains, in some design miscues (although that's probably least important to me) and worst of all - never following up on the ideas. They abandon whatever is left of their strategies at first sign of trouble.
Yes - IT IS DEPRESSING - but for different reasons. Subaru is on path of Saabization - turning into a market-irrelevant, financially ailing and uncompetitive company without real justification for its existence. They're not there yet - but the trends are visible by a naked eye.
2018 430i Gran Coupe
I think AWD will become more and more popular, but only if the car companies, including Subaru, figure out how to make their AWD models deliver high fuel economy, which they currently don't. Otherwise, rapidly rising gas prices may do them in (not Subaru, but many of the AWD offerings available). Hybrid and diesel powertrains will, of course, help in this regard.
Subaru's new diesel will be available soon this year in Europe, so why two more years before we might see it in the States? I guess it probably has everything to do with emissions. :-(
As for AWD, if it does gain in popularity marketwide, what will make Subarus stand apart after that? The whole concept of the boxer engine is even MORE difficult than the AWD for people to understand the benefits of.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I am on my second Subaru but those sales pitches will not resonate at all with me when it comes time to buy a new vehicle. I will still buy another Subaru if I find it to be the best for my needs, but it won't be based on those two selling points.
My $0.02.
Boxer engines - the average person doesn't even understand the difference between an inline engine and a V engine - most people call any 6 cylinder engine a "V6" - let alone understand what a boxer is.
2018 430i Gran Coupe
Kinda sad that Isuzu, now defunct in the U.S. has better brand recognition than Subaru, established here lo these almost-40 years...and Suzuki too, selling what? 10K cars a year for most of their existence in the States?
Safety can sell, and I have seen Subaru ads on TV that point it out. That is probably their strongest angle. They haven't had any big WRC wins since the 90s, have they? I forget. So they can't tie advertising to that. And the AWD and boxer angles are DOA for advertising, I think.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)