Subaru set to take a liberty

After building its brand around all-wheel drive and flat-four boxer four and six-cylinder engines, Subaru is facing a future shock.

Though confident of not selling its soul, Subaru Australia is preparing for newer technologies that may take it down a different road, away from its unique selling point.

Hybrid and pure electric power, even the possibility of an entry hatch such as the 660cc R2; which may be powered by a conventional in-line four-cylinder; which are on the Subaru horizon.

“In five, 10 or 15 years we will have to decide our future strategy,” Subaru Australia managing director Nick Senior says.

Senior admits the light-car segment is one area Subaru will have to address because it has no entry B-segment car in its local line-up.

“A B-segment car could be well-received,” he says. “However, it may not have a boxer engine or all-wheel drive, then we have to decide whether to move away from our strategy.”

He says the current-model R2 could be too small for Australia, but that could change in 10 years.

“Particularly if fuel prices continue to climb,” he says. “Our entry point is $24,490 (for Impreza) so we don't get young buyers and it's something we'd like to address.”

“It would be good to have a light car so people could step up through the brand.”

Fleet sales and its fleet buyback program had helped stimulate second-hand sales for dealers of low-mileage Subarus.

“People tend to hang on to their Subarus, pass them down through the family or sell them to friends,” Senior says. “So the fleet buyback deals has been good for dealers.”

He denies that fleet sales had damaged the brand.

“We did the buyback deal to control the cars and protect the brand,” Senior says.

Big rental agency Europcar bought 700 Foresters, 500 Outbacks and 300 Imprezas under a buy-back deal with Subaru Australia. Since then dealers have had a controlled supply of low-mileage used cars that are on-sold every six to 12 months.