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William Maley

July 2015: Subaru of America

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August 3, 2015

 

SUBARU OF AMERICA, INC. ANNOUNCES BEST MONTH EVER SALES RESULTS

  • Monthly sales increase 10.5 percent over July 2014
  • 44th consecutive month of year-over-year growth
  • Best July ever for XV Crosstrek, WRX/STI, Forester and Impreza
  • Best month ever for WRX/STI and XV Crosstrek
  • 13.8 percent increase YTD over 2014
  • 24th consecutive month of more than 10,000 Foresters sold
  • 17th consecutive month of more than 10,000 Outbacks sold

Cherry Hill, N.J. -  Subaru of America, Inc. today reported 50,517 vehicle sales for July 2015, a 10.5 percent increase over July 2014 sales of 45,714. July marks the best-ever sales month in company history, breaking the previous record set in August 2014 (50,246). The company also reported year-to-date sales of 322,935 vehicles, a 13.8 percent gain over the same period in 2014.

 

July marked the 17th consecutive month of 40,000+ vehicle sales for the company which continues to outpace the industry. XV Crosstrek, WRX/STI, Forester and Impreza sales were notably strong as each model line achieved its best July ever. The Forester posted a 9 percent increase, the Impreza a 22 percent increase, while the WRX/STI posted a record sales month and the most gains with an 85 percent sales increase. The XV Crosstrek continued to bring in strong sales with an increase of 30 percent, which also represented a monthly record.

 

"We are delighted to have achieved a new monthly sales record,” said Thomas J. Doll, president and chief operating officer, Subaru of America, Inc. “We would not have been able to achieve our current level of success without the hard work and dedication of our retailers, employees and independent distributors.”

 

“We have seen record numbers of consumers considering the Subaru brand. Consumers are not just shopping a single model – there has been strong demand for Outback, Forester, XV Crosstrek, Legacy, Impreza, as well as our performance models WRX and STI,” said Jeff Walters, senior vice president of sales, Subaru of America, Inc. “Almost 60 percent of our sales this year have been to customers new to the brand and we continue to work closely with our parent company to maximize production to meet the demand,” added Walters. 

 

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      View full article
    • By William Maley
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      “When the headlines say that the market has had the worst falloff since 2008, that will rattle consumer confidence,” he said.
      Source: Bloomberg (Subscription Required)

      View full article
    • By William Maley
      2018 saw a continuation of near-record sales and large profits for automakers in the U.S., but that appears to be coming to an end. Bloomberg reports various factors are conspiring to end this trend such as increasing interest rates and the average price of a new vehicle hitting record highs. While some may point out that 2018 saw a 0.3 percent increase in vehicle deliveries (17.6 million according to AutoData), analysts point that this is due to the tax cuts brought by President Donald Trump last year and automakers selling more vehicles to fleets.
      Charlie Chesbrough, senior economist at Cox Automotive said that the big U.S. automakers saw deliveries fall at a faster rate "in the last three months of the year than for all of 2018."
      "For some automakers, the slowdown has already begun,” said Chesbrough.
      Look at General Motors as an example. For the fourth quarter, GM reported a 2.7 percent drop in sales - 785,229 vs. 806,739 for 2017.
      “We’ve had a gradually declining trend on retail even with the tax changes. That’s the kind of trajectory we would anticipate given continued headwinds on the economic side,” said Emily Kolinski Morris, Ford’s chief economist.
      What are we expecting in terms of sales for the coming year? It seems everyone agrees that it will be at or under 17 million vehicles, but estimates vary widely with one predicting 16.5 million due to reductions in fleet purchases. Executives are quick to caution that sales won't implode this year. Scott Keogh, president and chief executive officer of Volkswagen of America said on a conference call that unemployment is low and consumer confidence is high. But the issue uncertainty with Keogh saying consumers are watching "interest rates rise and are wary of what’s been a volatile stock market of late."
      “When the headlines say that the market has had the worst falloff since 2008, that will rattle consumer confidence,” he said.
      Source: Bloomberg (Subscription Required)
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