Subaru expects strong demand from American buyers
Subaru expects strong demand from U.S. buyers for its vehicles to continue, a top executive at the Japanese automaker said Wednesday.
Subaru Chief Financial Officer Katsuyuki Mizuma’s confidence reflects the divide between consumers struggling to afford basic necessities amid record inflation and those who can afford to keep spending on essentials.
Caution about the health of the US economy
The remarks come as Walmart (a US retailer) issued a stark warning about the health of the US economy last week as its customers focus on spending on food and other essentials, but abandon items such as clothing and sporting goods.
Subaru can’t meet the demand
Subaru has orders for 50,000 vehicles, while retailers only have 4-5 days of stock in the US, Mizuma said, challenging the entire trend.
In the first quarter of 2022, the automaker sold 19% more vehicles in the United States at annualized rates. This is the region with the strongest growth. Even better, Subaru expects US sales to increase about 25% this fiscal year, to 636,000 units.
Japanese manufacturers are on the rise in the United States
With its Forester SUV, Subaru isn’t the only Japanese manufacturer to be optimistic about North American demand lately. Mitsubishi said it saw strong demand for new cars for the second quarter of 2022 and was also unable to meet demand.
Nissan also expressed confidence in its prospects in the United States and said the increase in sales volume will reduce negative factors such as inflation or rising interest rates.
Our opinion, for leblogauto.com
Subaru occupies a special position in the automotive industry: in 2021, of the 860,000 vehicles produced by the manufacturer, 640,000 units were sold in the United States.
Unlike many other brands, Subaru’s customer base is largely made up of private customers, often brand enthusiasts. This in particular allows him to have a very high level of trust.
Currently, the range consists of three SUVs: Outback, Forester and XV. The latter represents about 37% of the brand’s sales while the other two categories are about 30%.
Sources: Subaru, Reuters