3 Things To Know Now About Tiny Subaru Before You Buy
In addition to the vehicle, car shoppers should also get to know the automotive brand that makes the car. You’ll be dealing with them for years, so you need to make sure you are making an investment in a good company. You might be thinking of buying an all-wheel-drive 2020 Subaru Forester, Outback, Crosstrek, or Ascent SUV model. Is buying a Subaru right now a wise choice? Will the Japanese automaker be able to provide service and support your new car purchase?
Some automakers may not emerge from the COVID-19 shutdown in as good a shape as others. Subaru is one of the smallest automakers but they’ve been one of the most successful auto brands with eleven straight years of sales increases. Something no other automaker has done. They’ve done it by offering a purposeful lineup of all-wheel-drive vehicles. Subaru was off to another great start this year and it looked like it would be twelve years in a row of record sales. But that came to a screeching halt with the coronavirus.
Many automakers are trying to boost liquidity like GM, Ford, and FCA, who have drawn down billions of dollars in credit lines to ensure they have enough cash on hand to survive the next few quarters. But tiny Subaru isn’t worried about the next few months after its two manufacturing plants and retailers in some areas were shut down.
In an interview with Automotive News, Subaru of America CEO Tom Doll says they were having a fantastic first quarter and projecting on selling 725,000 vehicles this year. But they’ve had to scale back sales goals with everything that’s happened. Doll says inventory levels are good even though Subaru has one of the lowest inventory levels in the industry. He says “we like to keep it low and one less is better than one more.”
Doll says they have the luxury of a “fortress balance sheet” because they had over ten years of great results and it’s given them the financial resources to withstand this coronavirus pandemic and come out of it strong. They are doing so well, they have the financial resources to donate 50 million meals to Feeding America through the organizations’ food banks around the country.
Subaru’s CEO says even though they didn’t plan for something catastrophic like this, they have positioned themselves with the right products and are in a good financial position to emerge from this global pandemic in great shape. He feels like his local retailers who sell the cars are going to come out of this ok.
If you are thinking of buying a 2020 Subaru Forester, Outback, Crosstrek, or Ascent model, there are three contributing factors that make buying a Subaru a safe pick. The Camden, N.J. automaker has seen 11 years of record growth, they are better off financially than many large automakers, and Subaru’s retailers are emerging in good shape to support your new car purchase.
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Denis Flierl has invested over 30 years in the automotive industry in a variety of roles. All of his reports are archived on our Subaru page. Follow Denis on Facebook, Twitter, Instagram, Subaru Report. Check back tomorrow for more Subaru news and updates at Torque News!
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Photo credit: Competition Subaru