2017 Subaru Impreza, 7-seat Subaru SUV
Denis Flierl's picture

What Subaru’s extraordinary profits mean for car shoppers

Subaru announced they have extraordinary profits for 2015 because they took on the Japanese government. What does it mean for car shoppers?

There’s more good news for car shoppers as Fuji Heaving Industries (FHI), maker of Subaru cars takes on the Japanese government and wins big. Subaru will have more money to invest in their new upcoming 2017 Impreza and 7-seat SUV as they move forward. It’s always good when a car company is profitable, and even better when they have a President like Yasuyuki Yoshinaga who knows how to handle the business side.

The reason for the extraordinary profits at the end of 2015 is because FHI took on the Japanese government and won big. FHI does more than make automobiles, they also produce aircraft and helicopters. They sued the Japanese government for 48.2 billion Yen over claims of the balance of the initial investment fees associated with the AH-64D combat helicopter for the Japan Ministry of Defense. The Supreme Court ruled in FHI’s favor and Subaru will benefit from the ruling.

Yoshinaga is seen as aggressive in his home country of Japan, and he’s seen as conservative in the U.S. where risk-taking is the norm. Even though Subaru will be producing a new 7-seat Crossover, the Subaru President continues to move slowly in expansion of factories and building new vehicles. They are moving and U.S. consumers will benefit most. Subaru is investing in the U.S. because that’s where 60 percent of their global sales comes from.

Subaru announced that production capacity of Subaru of Indiana Automotive will be expanded to 394,000 vehicles by the end of next year, almost double the capacity now. Subaru also decided to push the Indiana plant expansion ahead of schedule to next summer. This will mean fewer delays for car shoppers who want a new Subaru Forester, Outback, Crosstrek and WRX/STI. These vehicles are most in demand and the expanded production will mean more of their all-wheel-drive cars will be rolling off the assembly line.

Taking on the Japanese government and winning helps too. Subaru will now have more money to invest in their new upcoming 2017 Impreza and new 7-seat Crossover that will be produced in the U.S.

Source: Subaru Japan

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