Subaru Aiming to Raise ‘Brand Value’ as Costs Rise

Subaru Aiming to Raise ‘Brand Value’ as Costs Rise

Subaru models could be getting more expensive in the near future.

Speaking recently to Automotive News, Fuji Heavy President Yasuyuki Yoshinaga acknowledged that related costs for vehicle manufacturing and development are rising more than expected, resulting in decreased profit margins. Although Subaru’s leader didn’t outright call for a rise in sticker prices, Yoshinaga did say the company “will have to make up for the increased costs by raising our brand value.”

The Japanese automaker attributes its rising costs to the development of hybrid powertrains as they work to comply with California’s zero-emission vehicle standard that goes into effect in 2018. Subaru plans on introducing a plug-in hybrid for the U.S. market before then as it continues to look for ways to improve fuel efficiency across its lineup.

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Expect Subaru to upgrade all its gasoline engines with direct injection starting next year, with the technology becoming standard in a next-generation Boxer engine rolling out in 2016. The company is then expected to add cylinder deactivation and lean-combustion cycles by the end of the decade.

Currently Subaru is looking at a seventh calendar year of record U.S. sales after recently announcing record revenue and profits for the fiscal year that ended March 31. The automaker expects to sell 600,000 units in the U.S. this current fiscal year.

[Source: Automotive News]

Discuss this story at our Subaru Outback forum

  • Eric Cameron

    OK…so what are they going to do to increase brand value?

  • smartacus

    Yep, that California ZEV mandate coming up in 2018 is really hurting Subaru. You’d think California would give a pass to Subaru because they are the most popular brand with the same-sex crowd.

  • Kinetis

    Larger marketing budget?

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