Subaru Sees 3% Growth in U.S.

Camden NJ January 18, 2019; bSubaru President Tomomi Nakamura is bullish about sales growth in the brand's key U.S. market, forecasting an 11th straight year of record U.S. volume in 2019. In its home market, however, Automotive News reports that Subaru is still reeling from a string of final inspection problems that have plagued the company since October 2017. Nakamura says he is committed to putting the scandals to rest.

Subaru plans to manufacture record overseas output of 380,000 units in 2019, up 6 percent from 2018, the company said Wednesday. The increase is mainly attributed to strong U.S. sales growth.

Subaru expects U.S. sales to increase 3 percent to some 700,000 vehicles. Nakamura said Subaru's overall inventory turnover rate stood at 33 days at U.S. dealerships in December, with stockpiles of the Ascent, Crosstrek, and Forester being particularly low.

"Our U.S. dealers said they could sell more. So, I see there is an opportunity (for further growth) in the U.S. market," he said. But when it comes to ramping up output, Subaru is going to take a wait-and-see approach at least for now. "We will be cautious about production," Nakamura said.

For the rest of his remarks, click here.