Automotive News - August 11, 2008 - (Page 4) 4 • AUGUST 11, 2008 Impreza, Forester push up Subaru sales Diana T. Kurylko dkurylko@crain.com Subaru’s formula How Subaru bumped up its U.S. sales this year Focused marketing on the strong brand message of awd, performance Lowered incentives to maintain residuals Lowered prices on redesigned Impreza, Forester CHERRY HILL, N.J. — Subaru is bucking the U.S. sales slump without pouring on large incentives or pumping up the advertising, and it’s outperforming some of the biggest Japanese brands. Subaru sales were up 5.4 percent in July and 4.5 percent for the first seven months of 2008. They are expected to follow that trend for the rest of the year, especially as the onset of cold weather increases demand for allwheel drive, says Tim Colbeck, Subaru of America’s vice president of sales. Subaru is likely to hit its 200,000 unit benchmark in the United States again this year without a major boost in incentive spending, he says. Last year, Subaru’s U.S. sales fell 6.7 percent to 187,208 units from 200,703 a year earlier. So what besides a keen focus on its Impreza WRX 5-door Forester 2.5X awd brand strategy and more focused advertising is driving Subaru’s U.S. sales? Undeniably lucky timing of two key replacement products: the Impreza compact and Forester compact crossover, with decontented and lower-priced entry models for both vehicles. When the Impreza was redesigned last year, Subaru changed the styling of the four-door dramatically, dropped the station wagon and added a five-door hatchback Impreza. Sales rose 19.3 percent in July compared with a year earlier and 13.1 percent through July. Subaru expects to set a sales record with the Impreza this year, topping last year’s record of 46,333 cars. Price cut Subaru lowered the base price of the entry 2008 Impreza by about $500 to $17,640, including shipping. Sub- aru is offering a $179 monthly lease with $1,000 down on the Impreza, “which makes it a very affordable first car,” Colbeck says. “A lot of the growth we’re seeing is in the five-door — it’s doing much better than the old wagon,” he says. A bigger and more traditional-looking Forester crossover replacement was launched in April. “We should have a record year, selling at least in the mid-50,000s,” Col- beck says. “We have no dealer or consumer cash on that car.” Subaru lowered the base model price by about $1,000 to $20,640, including shipping, by decontenting the vehicle. It removed standard heated seats, the roof rack and power mirrors, and buyers haven’t seemed to care. Sales of the Forester were up 51.1 percent in July and 26.0 percent for the first seven months. Because of high demand worldwide, Subaru of America hopes it can get enough product to keep U.S. sales flying, Colbeck says. Older models slow Meanwhile, sales of Subaru’s three older models — the Legacy Outback wagon, Legacy sedan and Tribeca SUV — are slower, reflecting the slump in the automotive market. Colbeck says see SUBARU, Page 46 Nissan has some bugs to work out of future hybrid Hans Greimel hgreimel@crain.com Nissan touts electric test car ➤ 46 YOKOSUKA, Japan — Nissan’s first in-house hybrid will arrive in 2010 with an Infiniti badge, but its project manager concedes that he has many kinks to iron out. During a prototype test drive for journalists last week, the hybrid car suffered awkward lags when the engine kicked in to help the electric motor. Deceleration also was jerky because of battery regeneration. “We still have a few issues with this development vehicle,” says Tatsuo Abe, manager of Nissan’s hybrid engineering unit. “We need to make some adjustments before 2010.” Nissan Motor Co. is pinning its hopes on the new hybrid system to help it catch Toyota Motor Corp. and Honda Motor Co. in the green-car race. To date, Nissan’s only hybrid is a version of the Altima car equipped with a Toyota-developed system. Performance hybrid Nissan’s first in-house hybrid debuts as an Infiniti in 2010. The car has Rear-wheel drive V-6 engine 110-lb. lithium ion battery 3-mile range in electric-only mode Nissan’s pursuit of big-car hybrids charts a different course from its Japanese rivals, which have enjoyed hybrid success mostly in such small cars as the Prius and Honda Civic. Honda pitched the performance of its Accord Hybrid sedan but dumped the model at the end of the 2007 model year after lackluster sales. Honda is now planning a hybrid Fit small car, which should achieve excellent fuel economy. Nissan makes no apologies for its see INFINITI, Page 46 Nissan displayed its hybrid technology in an infiniti G35 but has not said what model for 2010 will get a hybrid version. soon to say what model, says Atsushi Shizuta, vice president for product development. It won’t be a standalone hybrid like the Toyota Prius but, instead, will be a hybrid version of a regular nameplate. It wasn’t clear whether the hybrid might be part of a new nameplate. The test version was an Infiniti G35. Performance hybrid Nissan’s own hybrid technology will debut in an Infiniti, but it is too Insurer group: Minitrucks pose hazard that needs feds’ attention Harry Stoffer hstoffer@crain.com WASHINGTON — New types of vehicles called minitrucks are creating road hazards that demand federal regulators’ attention, an influential safety lobby says. The Insurance Institute for Highway Safety, a research group for auto insurers, thinks minitrucks on public roads are dangerous, spokesman Russ Rader says. Builders and sellers of minitrucks tout their value at construction and industrial sites. But a growing number of states allow the trucks limited access to public streets and highways. Last month, Tiger Trucks LLC launched production of Chinese-designed minitrucks in Poteau, Okla. A new state law allows the vehicles on many Oklahoma streets and highways, beginning in November. The law appears to conflict with federal safety rules. A vehicle built and sold for use on public roads must meet all safety standards — such as installation of frontal-impact airbags — unless it qualifies as a low-speed vehicle, says Rae Tyson, spokesman for the National Highway Traffic Safety Administration. A low-speed vehicle is limited to 25 mph and gross weight of 3,000 pounds. Common low-speed vehicles are the golf-cartlike runabouts often found in retirement communities, at resorts and on college campuses. Tyson declined to comment directly on whether Tiger trucks capable of more than 25 mph in Oklahoma would violate federal standards. In an e-mail to Automotive News, he said: “States may adopt laws regarding the vehicles that use their roads and highways. However, those laws cannot relieve or excuse the manufacturers’ or dealers’ responsibilities under federal law.” The Insurance Institute’s Rader says the group considers runabouts and minitrucks “part and parcel of the same problem.” He says they reflect efforts to carve out exceptions from safety standards developed over 40 years, on the grounds that “people who buy cheap” don’t get the same protection as other consumers. The institute thinks NHTSA must take action but has not made a formal request, Rader adds. The Tiger Champ pickup, with a payload of as much as 1.5 tons, has a base price of $12,995. c The Tiger Champ pickup has a payload of as much as 1.5 tons.
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