September 1, 2009

By Katsuhiro Yokoyama,
President and CEO
SUBARU CANADA

Subaru: Delivering the right vehicles for Canadians 

What a difference a year makes! As I think about our outlook for 2010, I can’t help but look back and reflect on some of the core Subaru philosophies that have supported us through such uncertain economic times. As you are all aware, the fall of 2008 saw an almost unprecedented decline in economies worldwide. We watched the stock markets crumble and credit markets tighten up almost overnight.

As the economy spiralled downward, many of us saw friends or family members lose jobs and lose years’ worth of personal savings.  Naturally, it was a worrisome time for all of us. In the automotive world, many manufacturers – domestic and imported – experienced great losses due to a rapid decline in consumer confidence. Inventory piled up quickly and many manufacturers were forced to extreme measures to weather the storm.

Nearly a year later, we’re starting to see positive indicators of recovery but it would be presumptuous to expect consumer confidence to bounce back fully. Even though Canada wasn’t hit as hard as our U.S. counterparts, we may still feel a little wary and tempted to scrutinize our purchase decisions – especially on big-ticket items like automobiles. The truth is that consumers have become much more cautious and require much more assurance from the brands they purchase. Consumers demand brands that they can trust!

At Subaru, gaining the trust of the consumer is one of our highest priorities. We’re committed to maintaining the highest levels of honesty, integrity and transparency, and reflecting this approach in each and every interaction with our customers. This philosophy is exercised in all areas of our business, from holding our products up to the highest standards of quality, performance and safety to delivering true value and service without any unexpected surprises. It also comes down to communicating with the market in a straightforward and honest manner. Most importantly, by maintaining an open dialogue with our customers – through measures like a dedicated customer call centre, focus groups and customer surveys – we’re able to listen, determine and respond to the needs and wants of the market. Remaining humble and always listening to the voice of our customers reflects well on our brand, establishes credibility and builds the trusting relationships that our Subaru owners need.

The Subaru Legacy delivers outstanding fuel economy, top-notch safety and plenty of comfort in a bold, dynamic frame that’s surprisingly fun to drive.

This approach can be seen throughout our entire lineup as we consistently build vehicles that meet and exceed customer expectations. The most recent example is reflected in our 2010 Legacy and Outback where the voice of the North American consumer became the focal point of the all-new designs. While Legacy and Outback vehicles are sold worldwide, Subaru recognized that although the previous generation models were highly regarded by North Americans there were a few areas of improvement required to fully meet their needs. Things like interior space, fuel economy and specific convenience features have become increasingly important here. Acknowledging the importance of the North American market, Subaru made a conscious decision to redesign these vehicles accordingly. As a result, Subaru was able to deliver exciting new models that directly addressed our customers’ concerns without any compromises whatsoever!

For example, Legacy and Outback have grown in size to provide more spaciousness and comfort yet are substantially more fuel-efficient, less costly to operate and more environmentally friendly. New for the 2010 model year, an available Lineartronic CVT (Continuously Variable Transmission) makes it possible to enjoy the performance of all-wheel drive with the fuel economy experienced with two-wheel-drive vehicles! I’m proud to report that both Legacy and Outback models equipped with this innovative system can achieve over 1,000 kilometres per tank during highway driving. In addition to this impressive feat, both Legacy and Outback are manufactured in an environmentally conscious North American facility committed to maintaining a zero landfill status – enhancing the environmental benefits further.

The all-new 2010 Outback delivers nimble handling, outstanding versatility and surprising value – all wrapped up in a more spacious and fuel-efficient package.

We also improved vehicle performance without compromising our class-leading safety systems or top-notch safety ratings. Like all Subaru vehicles, the 2010 Legacy and Outback are designated as a 2009 Top Safety Pick by the Insurance Institute for Highway Safety. This great news makes Subaru the only manufacturer to achieve 2009 Top Safety Pick designations for all of its 2010 models.

The new Legacy and Outback have a bolder, more contemporary exterior design while still maintaining the inherent Japanese reliability and versatility loyal Subaru enthusiasts have come to know and love.

Abundant amenities also abound offering consumers all of the options they’ve asked for, and many more that we were happy to deliver. A voice-activated Bluetooth hands-free system and a MediaHub with USB dock that lets you access your iPod from the audio system controls are just some of the convenience features that are now available.

Along with advanced technology and plenty of creature comforts that are in step with the times, we have also made our vehicles more affordable. The new Legacy starts at just $23,995. Similarly, the new Outback is well equipped from $28,995.

So as you can see, when our Canadian customers told us that they wanted a more spacious, more efficient and better equipped vehicle, we listened. Yet we were still able to maintain our core DNA that makes Subaru vehicles extraordinarily safe and fun to drive. Backed by a potent SUBARU BOXER engine and the all-road/all-weather capabilities of Subaru symmetrical full-time All-Wheel Drive, the new Legacy and Outback – now more than ever – are the perfect match for the diverse landscape and weather conditions Canadians face every day.

Moving forward, I believe we must not lose sight of our customer-focused approach. Building trust in our brand and listening and responding to the needs of Canadians – in terms of the products we offer, the features with which our vehicles are equipped and the buying experience we provide – has served us well and has resulted in surprising growth during a very significant recession. Collaborative efforts at the retail level, to help Subaru dealers improve the customer experience, have also contributed to our recent success.  We’ve had the good fortune to build a very loyal customer following and this is something I would like to see further improve in the future.

I anticipate safety, fuel economy and environmental responsibility will continue to be important considerations for the future. Through “kaizen” (continuous improvement), we will continue to strengthen our efforts in these areas and bring innovative solutions to meet consumers’ needs. 

One of our greatest challenges is just getting the word out. We’ve been somewhat modest in the past, but now we’re making a conscious effort to make people aware of all the great things about Subaru. We believe that our products are well equipped to meet evolving expectations, but it’s our core philosophies and ability to listen that truly set us apart. In any climate (economic or environmental), Subaru has the means to create confidence in its consumers. And take it from me, driving confidence is driving pleasure.