![]() This means that Subaru, which intended to sell 725,000 vehicles in 2020 – a modest 4-percent uptick – is now targeting 575,000 vehicles, an 18-percent year-over-year decline. “During these very good years we’ve had, particularly in the last five or six years, we were able to fortify our balance sheet in such a way that we can withstand this type of a situation.” “It just came upon us so quickly that there really wasn’t much time to adjust,” Doll says, while also pointing out that the brand is in a markedly different position now compared to the recession of 11 years ago. No matter how good 2020 will look by the standards of not-so-ancient history, no brand that’s on an upward trajectory this steep plans for a rapid economic shutdown. This comes from a brand that, up until August 2014, had never sold 50,000 vehicles in a single month, a brand that didn’t begin averaging more than 50,000 monthly sales until 2016. ![]() Then in May, despite a 19-percent year-over-year decline, Subaru still sold nearly 52,000 vehicles. ![]() Doll, who’s been the president and CEO for two years, says Subaru sold 8,000 more vehicles in April than the brand anticipated. June, says Doll, is “going better than we thought.” That’s after March and April sales slid “just” 47 percent. Given the limited stock, how much market share does Subaru potentially stand to lose if it doesn’t have the vehicles to sell during a period of artificially inflated demand? Doll doesn’t expect to see inventories rise to reasonable levels until mid-August.Īlthough plant shutdowns quite obviously limit inventory, the main reason Subaru was caught off guard heading into the summer was unexpectedly high demand through the spring. Inventory is low at Subaru - just 60 days’ supply overall and lower for some models such as the Outback, which is just the way the company likes it in normal circumstances. “I think we’re probably in favor of really helping the overall economy get back,” Doll says, “because that’ll help everything: It’ll help used cars, new cars and other industries besides just autos.”Įconomic prudence aside, it’s worth noting that Subaru is hardly in a position to take advantage in a Cash For Clunkers scenario. It’s the kind of perspective that causes Doll to believe that government intervention would be better employed across the economy at large rather than targeting the auto industry in a Cash For Clunkers repeat. That kind of perspective isn’t just useful in terms of Doll’s understanding of Subaru, but of the industry as a whole. Doll has seen the company falter (fewer than 100,000 Subarus were sold in 1994 and again in 1995), he’s seen the company grow in the midst of turmoil (Subaru sales soared to a then record high in the midst of 2009’s economic collapse), and he’s seen his share of flops (Baja, Tribeca, Legacy SUS) and hits (Outback, Forester, Crosstrek). Doll is in an unusual position in the industry – he began his tenure with Subaru in 1982, helping to craft four decades of history at one brand. Member FDIC.In an interview with Automotive News, Doll was relatively transparent about Subaru’s current state of affairs and the automaker’s plans for recovery. Deposit products and related services are offered by JPMorgan Chase Bank, N.A. Products not available in all states.īank deposit accounts, such as checking and savings, may be subject to approval. JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. Insurance products are made available through Chase Insurance Agency, Inc. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Past performance is not a guarantee of future results. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. "Chase Private Client" is the brand name for a banking and investment product and service offering, requiring a Chase Private Client Checking℠ account. is a wholly-owned subsidiary of JPMorgan Chase & Co. “Chase,” “JPMorgan,” “JPMorgan Chase,” the JPMorgan Chase logo and the Octagon Symbol are trademarks of JPMorgan Chase Bank, N.A.
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