Subaru's Grand Plan for the next 5 years

[Joel Gat, 1.8L]

Hello,

Here's an excerpt from Subaru's business plan for the next 5 years:
---
1. Automobile sales expansion
(1) Japan
- Strengthen four mainstay models (full model changes, new horizontally opposed six-cylinder engine, etc.
- Product exchange with GM
- Strengthen sales network: improve quality of sales and services, improve CS, raise efficiency of administrative work and management of distributorship division
- Reconstruct communications networks to dealers and utilize information technology (IT)

(2) North America
- Strengthen three mainstay models (full model changes, horizontally opposed six-cylinder engine, introduction of turbo models, etc.)
- Launch a 4-door pick-up based on Legacy (Starting 2002)
- Product exchange with GM
- Subaru dealer development supported by GM
- Utilization of GM expertise, systems and infrastructures (automobile loans: GMAC, internet: e-GM)

(3) Europe
- Product exchange with GM
- Clustering of distributors and rationalization of total logistics for European Union

(4) Other regions
- Develop dealer network directly managed by a distributor in Oceania (build a 30,000 unit p.a. sales network)
- Product exchange with GM and Subaru dealer development supported by GM in Asia, Middle East, and South America

2. Automobile product development

- Jointly develop a new-concept SUW with GM (launch by fiscal 2005 or 2006)
- Develop a compact car for Europe and a minicar in cooperation with GM and Suzuki
- Strengthen engineering development capabilities (increase engineers by 200; more computer aided development process)

3. Increase automobile production capacity

- Establish capability of 800,000 units (facility and equipment investment of \60 billion)
- Improve supply in North America by boosting Subaru-Isuzu Automotive Inc.'s output and implement local engine production
- Boost domestic production capacity at Gunma plants
- Improve production capacity of CVT transmissions to expand component business

[This message has been edited by Joel Gat, 1.8L (edited June 28, 2000).]

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[Tkacik]

Wow there sure are a lot of mentions of GM in those plans. I dont know if this is good or not. What exactly does "Product Exchanges" mean?

[N/A]

Damn maybe they should have just said "For the next five years we'll do whatever GM tells us to". They mention GM way too many times in there for my comfort. My parents owned GM products before. Not anymore though. I can't believe they said they will rely on GM's expertise and engineering. Yuck! SOA+GM=POS! Looks like my 99 RS may be the first and only Subaru I own. Its a damn shame to. Well maybe my hope of a Anti-trust breakup of GM will happen in the next 5 years. They do after all own a chunk of everything out there. If the US gov goes after VISA and Microsoft it would be only fair to break up GM. Won't it be nice when you go to a car show and they place you in the group with the Neon, Sunfire, and the new Eclipse?

[El Kabong]

I've definitely had mixed luck with GM products. Hopefully any information sharing is for the better and not involving production quality.

[clone]

I would rather see Scooby sleeping in bed with Toyota than GM.

Subaru should be distinctivly Japanese, not a Aztek/Sunfire clone with AWD.

[Hucker]

I'd have to say my S10 ZR2 Hasn't given me any probs yet. Haven't even got stuck in the mud either

[MikeYOX]

GM has some of the best transmissions in the world.

[ndmorespd]

Hey relax... It could be worse...

It could be FORD!!!

Mike

[KC]

3 of the best vehicles to come out of GM happened to have turbos strapped on...

GMC Typhoon
GMC Cyclone
Buick Regal Grand National

I'd rather own a GM then go anywhere near a Ford.

--KC

[blaster88]

I don't know that I would be all that concerned about GM haaving a piece of Subaru. GM *is* in bed with Toyota (at one point they owned 1/3 of Toyota, don't know what % it is today).

Typically GM acquires pieces of other companies in order to improve itself, not the other way around.

GM also has stakes in Suzuki and Isuzu.

So, don't look at it like GM is after "your" car company, just think that they realized what you did.

[The_extreme]

Maybe - Subaru just wants to suck some $$$'s out of GM That would be ok ......

Does this mean we are going to get the 4wd opel calibra turbo in the states after all??

Jeff

[harpy]

it would really suck if Subaru turned into an American car... it would instantly go on the "do not buy" list, I just hate all American cars made after 1975...

[jaybird]

KC, The 89' Trans Am GTA Limited also came with the 3.8 Turbo and a limited # of five speeds.

I don't think GM will ruin Subaru I think they will help with $$$ and use them to benifit GM. Maybe the next gen fbody will be the same as the Impreza. Wouldn't all those Z28/TA guys just die!



[This message has been edited by jaybird (edited June 29, 2000).]

[ColinL]

While you anti-GM paranoid types are busy fretting, I was noticing a few things.

introduction of turbo models
Note how they didn't say "Impreza turbo". Models could just mean Impreza turbo 2 and 4 door, or it could mean a Forester, OBS or Legacy GT turbo. Interesting.

Improve supply in North America by boosting Subaru-Isuzu Automotive Inc.'s output and implement local engine production
I think this one is very important. I have closely compared the build quality of a Forester and Impreza (built in Gunma) versus a Legacy, etc. (build in Indiana) and there are some differences. The Japanese cars are slightly better. HOWEVER, domestic production is the best way to keep prices down and leave room for profitability because of import tarrifs.

What I'm saying is that I want the Impreza turbo to sell well and I want it 100% constructed in the US. I like the Gunma build quality, but the economics for SOA would really be bolstered by local production. And I think a Legacy built in Indiana still is a much better built car than a Chevy Impala. (Look at VW-- built in Mexico and they are fine. Go check out a new one if you don't believe me.)

[Schwabe]

Supposedly the first product exchange between Subaru and GM will be that Saab receives Subaru's AWD system.
And by the way, GM have no plans to import the Opel Speedster to North America.
Or so they told me after my rant about the junk they build in Detroit.

[boxerman]

Why is everybody so anti-GM? After my experience with the SOA parts distribution system earlier this year it is blantantly obvious that Subaru of America lacks the infrastructure to become a mainstream auto manufacturer instead of a niche company.

GM also has some good products, thier trucks are first rate and as much as it is derided as old tech, the SBC is excellent. The Corvette is probrably the best bang-for-your-buck sportscar available in the US, and if you can get past the styling the new Camaro and Firebird are great street racing, dragstrip and autocross cars.

GM now has an active road racing campaign, the Corvette will only get better and watch out for the Northstar motors (I know, not built by GM). GM now also has access to Fiat's talent pool which includes Ferrari. Remember the collaboration between GM and Lotus with the ZR-1.

Its cool to be anti-establishment and GM is definately the establishment, but give them some credit. All this from a Mopar guy too.
Tim

[OG]

At least Ford uses OHC engines. GM is still stuck on pushrods.

[Kalins1]

<< GM has some of the best transmissions in the world. >>

Hmm...interesting...since they buy most of their transmissions from the Germans just like Chrysler does. Not many manufacturers actually build their own transmissions anymore. Tis not profitable.

[Pilot]

Okay stop pissing on Ford, I won't buy a Ford but I would buy a car from a Ford managed company. They are very good at managing other makes.

To date GM is noticably poor at managing other makes.

GM has some of the best techology in the world but it doesn't get used properly becuase GM is managed poorly. That is why it is contstantly losing market share.

They do however make the one of the best automatic transmissions on the market. Many companies buy auto trannys from GM because they are so good not the other way around.

Frankly I'm just waiting for SOA or even Fuji to get a good Marketing and product development team together and fire the imbeciles who are currently running things in that department.

[blaster88]

I still find it amazing that people think this is a bad thing for Subaru. Look at the other manufacturers that GM has investments in. Name one where the products have gotten worse.

I doubt that one can - Isuzu, Toyota, Suzuki, Saab, Lotus - all pretty decent makes that have continued to improve over the years.

[Joel Gat, 1.8L]

2. Automobile product development

- Jointly develop a new-concept SUW with GM (launch by fiscal 2005 or 2006)
- Develop a compact car for Europe and a minicar in cooperation with GM and Suzuki
- Strengthen engineering development capabilities (increase engineers by 200; more computer aided development process)

Hey you engineers... look, they need 200 more of y'all Go get some useful jobs and fix us up some nice engines

Joel - neutral on the GM deal

[KC]

Jay, I didn't mention the '89 GTA Ltd because I don't think it's a "best" vehicle. It was something they tried, and failed at. But at least they tried.

--KC

[ESPO99RS]

Okay here's my $.02 on the topic. If you read the most recent Automobile with the article about Juha and the Subaru rally car. They have another article that talks about all the different car manufacturers and who is buying who and what that means. GM only own 10% of Fuji Heavy Ind. and this is mostly to gain from Subaru's experience with AWD. They really didn't say much about GM telling Subaru what to do, they will maybe help Subaru improve distribution and service but not take over Subaru, no CEO swapping and such. So, I think it will be a good thing for Subaru to have GM's financial backing if needed. Another thing I heard from a Subaru dealer I talked to here in CT is that in August each dealership will be recieving one STX to sell! And it will have the supercharged 2.5L. This what he told me so don't hold me to it. But, I hope it's true and he said no turbo until atleast 2002.

[Rick Buckner]

The GM thing doesn't bother me. Now my S-10 and RS are step brothers.

Rick http://roads.to/ricksrides

[TR]

how in the world did you get this info? wouldnt this be confidential material, not for public eyes?