Hoovey689

iTrader: (16)

Should Subaru stay niche or go mainstream?

Out of all the automakers doing business in the US, Subaru is the one that has carved out the most interesting niche for itself in the minds and lifestyles of buyers. Outdoorsy types, dog lovers and active families alike flock to Subaru's rugged nature and all-wheel-drive utility – and they're fiercely loyal, which is probably why Subaru has become a success story.

But Subaru is still a relatively small player in the US market, and with recent profits surging, parent company Fuji Heavy Industries is facing a dilemma: continue on with the successful niche market Subaru has carved out for itself, or attempt to go mainstream and give big players like Nissan and Toyota a run for their money. According to Carscoop, Japan Times and Bloomberg News are reporting that Fuji Heavy is beginning discussions this month to determine which direction Subaru will take.

To deviate from the current model lineup would likely mean making cheaper cars and sacrificing some of the features that have made the brand so well loved. As Fuji Heavy President Yasuyuki Yoshinaga told reporters, "We're not a carmaker that can grow as big as Toyota. And even if we could, reaching that sort of scale would mean we'd stop being Subaru."

http://www.autoblog.com/2013/08/11/s...instream-poll/

jadu

iTrader: (42)

Imo, Subaru's liking the success of the br-z, but going mainstream is going to take some engineering and resources.

Joey-E

iTrader: (1)

Wow such a hard choice, we are all so used to Subaru not being one of Big Car makers yet have such a loyal following. I think Subaru has the reputation to go mainstream more then ever now and can definitely give the big auto makers a run for their money.

gengar

The huge risk of chasing megacorp profits by going mainstream is lowering quality, losing features, and diluting the value of the brand, just to name a few. All these negatives have the chance of angering your loyal customers, and if the mainstream push doesn't catch on, the company can find itself in a far worse position than where it started.

Personally, because Subaru has such a loyal and niche following (at least from what I've seen in the US), I think the risk for Subaru is much higher.

More generally, I don't really get the attraction that some of these company owners/managers have towards explosive growth and money-grubbing profits given how difficult it is to gain market share in an already saturated market with tons of competition. Sticking to a proven formula and tailoring products to a loyal fan base is not a bad thing, and it doesn't have to spurn growth either.

Blackraven

What you said reminds of the position that Maserati is now taking.

There are different opinions as to whether this move will be a good thing or a bad thing.

With that said:
I'm also reminded of what was said in another thread:

I quote

This while they're pushing to make Ferrari even more exclusive.

If you ask me though, Subaru is fine where it is. They seem to sell quite well given that it takes a more premium and niche approach.

And where I am located, you will see more Subaru Forester SUVs than Toyota RAV4s.

Like 1 RAV4 = 3 Subie Forester cars

SteVTEC

No way, stay Subaru.

The last thing the world needs is another Toyota, Honda, Nissan, VW, Chevy, or Ford. And everybody already sees how fiercely these players all have to compete with one another, which is good for us, but I think would be bad for the Subaru brand to try and chase after them.

Outrage

Subaru only seems like a niche brand in the Southwest. Here in the Northeast, Subarus are fairly common.

bitkahuna

iTrader: (20)

witness the deaths of saab, suzuki, near death of mitsubishi, troubles for volvo, and other brands that tried to go more 'mainstream' - it would be a HUGE mistake.

they need to stay with quirky, frumpy, reliable, great awd, simple - all the things that make a subaru a subaru. have a lot of respect for the brand! they're not for everyone, but as a younger generation seems LESS interested in cars, especially as a material status symbol, a subaru becomes even more appealing - the practical anti-establishment outdoorsy car.

nthach

Subaru should stay Subaru. Not become a Toyota +. Even though FHI does have Toyota's war chest somewhat available.

mmarshall

Given the relatively large numbers that Outback and Forester consistently sell in (and what used to be the case with the WRX), one can hardly call Subaru a niche. So, IMO, the poll choices are actually incorrect....Subaru is not a niche manufacturer to start with. They have been, for years, one of the largest names in the car-based AWD business.

LexFather

Good problem to have Once they continue to make cars like the WTX, BRZ, Sti i'm all for any decision they make

jwong77

I think its less risky for Subaru to go mainstream than it is BMW and Mercedes, because exclusivity is not really one of Subaru's core brand values, whereas it used to be that way for the other two, simply because they are thought of as "Luxury Marquees".

Blackraven

Hehe probably because it has ice-and-snow conditions which favors on the 4WD/AWD vehicles such as the Symmetrical All Wheel Drive of Subaru.

Either way, overall, Subaru is really positioned above your typical Japanese auto manufacturer

And yeah it's better that way.

Joey-E

iTrader: (1)

How about the thought of a Subaru Luxury division/line? Or Mainstream fuel efficient 2dr and 4dr AWD & RWD and even sports cars with some style like the BRZ except with more models to choose from.

I guarantee those naysayers would think about owning something "mainstream" by Subaru if they offered it .

bitkahuna

iTrader: (20)

nice contradiction - the car-based AWD business is a niche. i know in the NE AWD has become more and more popular, but obviously that's just the NE. other parts of the nation couldn't care less about AWD for the most part. most of subaru's sales are probably less than 200 miles from the canadian border

bmw and mercedes are already far more 'mainstream' globally than subaru will ever be. 'exclusivity' is generally for low volume / very high priced vehicles, something subaru is unlikely to ever do / be so i agree it's not one of their 'core brand values', but while bmw / mb do have some more 'exclusive' models (by virtue of price and/or low volume), they also make 1 series, a series, and outside of the u.s., some very basic models.