Subaru of America, Inc. Announces Resignation of President & COO; Company Outlines New Management Structure
15 June 2000
Subaru of America, Inc. Announces Resignation of President & COO; Company Outlines New Management Structure
CHERRY HILL, N.J. - Subaru of America, Inc. and George Muller, its president
and chief operating officer, have jointly announced that Muller will be leaving
the company to pursue an entrepreneurial opportunity. Muller, who has served
as the auto company's top American executive for the past seven years, will
serve as an advisor to SOA over the next few months before assuming a principal
role in a private equity investment company.
"It is with mixed emotions that I have decided to leave Subaru," said
Muller, who was the Automotive News "Outstanding Asian Nameplate All Star" in
1998. "Everyone associated with the Subaru brand can be proud of our
turnaround. Today, Subaru has great sales momentum, strong brand recognition,
financial health and a very bright future. However, for me, this is a rare
opportunity to pursue a new entrepreneurial challenge."
In making the announcement, Mr. Takao Saito, Chairman and CEO, Subaru of
America, Inc. stated, "George Muller played a crucial role in rebuilding the
Subaru organization and our brand in the United States. The SOA turnaround
has been a significant factor in the success of our parent company, Fuji Heavy
Industries Ltd. We appreciate the tremendous contribution George has made to
the Subaru business."
Muller, a 21-year Subaru veteran, was named SOA president and COO in July
1993. Together with his management team, he led a strategic repositioning of
the Subaru brand in the United States and a turnaround that one industry
analyst called "one of the most profound ever in the auto industry." By
repositioning the Subaru brand around its core strength -- all-wheel drive
cars -- and successfully redirecting the company's marketing around niche
audiences and active lifestyles, the company has charted a dramatic business
and financial turnaround.
SOA sales this year are projected to reach nearly $4 billion, three times
its annual revenue of $1.3 billion in 1992. As one of the fastest growing
brands in the industry, Subaru has also posted seven consecutive years of
retail sales growth in the United States.
The company is credited as the pioneer of the crossover SUV category, the
fastest growing segment of the auto industry, thanks to its successful
introductions of Outback and Forester models.
And the Subaru brand image has been completely recast, as a near-premium
brand, thanks to its marketing success of communicating the versatility and
go-anywhere capability benefits of its core all-wheel drive technology and
developing loyalty among new sets of niche customers.
The success of the Subaru brand repositioning helped its parent, Fuji
Heavy Industries Ltd., earn the distinction as "Most Improved Car Company in
the World" by the London-based "Financial Times Automotive World Magazine".
"At a time when the auto industry is focused on consolidation and creating
larger and larger organizations, I think Subaru is a model for developing
cross cultural focus, agility, speed and innovation," said Muller. "Look at
what Subaru, a small auto company has done. We differentiated ourselves
around our strengths. We invented a category. We resurrected our brand ...
all with a minimum of resources."
Muller, who is assuming the temporary role of executive advisor to the
chairman for the next few months, will be assisting the company with a smooth
management transition.
In announcing its succession plan, the company will reorganize its
executive management team. Effective immediately, Mr. Takao Saito, SOA
chairman and CEO, will also assume the title of president, Subaru of America,
Inc. In addition, the company will be drawing upon two of its most seasoned
and talented executives who will assume new leadership roles.
Thomas J. Doll, an 18-year Subaru veteran and currently senior VP and CFO,
and Fred D. Adcock, a 12-year Subaru veteran and currently senior VP, Sales,
are being promoted to the positions of executive vice president and will
jointly support Mr. Saito in the strategic planning process and in overseeing
all day-to-day operations. These promotions are effective immediately.
"Tom and Fred have demonstrated great leadership in their respective areas
during our business turnaround," said Mr. Takao Saito. "They also provide
stability, continuity and a shared vision for our future growth as well."
About Subaru of America
Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy
Industries Ltd. of Japan. Headquartered near Philadelphia, the company
markets and distributes Subaru vehicles, parts and accessories through a
network of 590 franchised dealers across the United States. All Legacy and
Outback models sold in the U.S. are produced at the company's American
manufacturing plant, Subaru-Isuzu Automotive, Inc., near Lafayette, Ind.
Over the past eight years, the company has nearly tripled its revenues and
seen its sales increase by nearly 100 percent thanks to its popular line of
car-based sport utility vehicles. The company is among the fastest growing
brands in the automobile industry and was recently named "Most Improved Car
Company in the World" by the London-based "Financial Times Automotive World
Magazine".