Subaru ( スバル ? ) is the automobile manufacturing division and brand name of Japanese transportation conglomerate Fuji Heavy Industries (FHI).
Subaru is internationally known for their use of boxer engines in most of their vehicles above 1500cc as well as their proponence of the all wheel drive drivetrain layout, which became standard in most international markets as of 1996. They also offer many turbocharged versions of their passenger cars, such as the Impreza WRX.
Fuji Heavy Industries, the parent company of Subaru, is currently in a partnership with Toyota Motor Corporation, which owns 16.5% of FHI.
Subaru is the Japanese name for the Pleiades star cluster, which in turn inspires the Subaru logo and alludes to the six companies that merged to create FHI.
History
FHI started out as The Aircraft Research Laboratory in 1917 headed by Chikuhei Nakajima. In 1932, the company was reorganized as Nakajima Aircraft Company, Ltd and soon became the primary manufacturer of aircraft for Japan during World War II. At the end of the Second World War Nakajima Aircraft was again reorganized, this time as Fuji Sangyo Co, Ltd . In 1946, the company created the Fuji Rabbit motor scooter with spare aircraft parts from the war. In 1950, Fuji Sangyo was divided into 12 smaller corporations according to the Japanese Government's 1950 Corporate Credit Rearrangement Act, anti-zaibatsu legislation, but between 1953-1955, four of these corporations and a newly formed corporation Fuji Kogyo , a scooter manufacturer; coachbuilders Fuji Jidosha ; engine manufacturers Omiya Fuji Kogyo ; chassis builders Utsunomiya Sharyo and the Tokyo Fuji Dangyo trading company decided to merge together to form the Fuji Heavy Industries known today.
Kenji Kita, the CEO of Fuji Heavy Industries at the time, wanted the new company to be involved in car manufacturing and soon began plans for building a car with the development code-name P-1. Mr. Kita canvassed the Company for suggestions about naming the P1, but none of the proposals were appealing enough. In the end, he gave the car a Japanese name that had been his personal favorite from childhood: Subaru. The first Subaru car was named the Subaru 1500. Only twenty P1s were manufactured due to multiple supply issues. From 1954 to 2008, the company designed and manufactured dozens of vehicles including the 1500 (1954), the tiny air-cooled 360 (1958), the Sambar (1961), the 1000 (which saw the introduction of the Subaru boxer engine in 1965), the R-2 (1969), the Rex and the Leone (1971), the BRAT (1978), Alcyone (1985), the Legacy (1989), the Impreza (1993), the Forester (1997), the Tribeca (2005), and the Exiga (2008).
Major shareholders
Nissan had acquired a 20% stake in 1968 during a period of government-ordered merging of the Japanese auto industry in order to improve competitiveness under the administration of Prime Minister Eisaku Sato. Nissan would utilize FHI's bus manufacturing capability and expertise for their Nissan Diesel line of buses. In turn, many Subaru vehicles, even today, use parts from the Nissan manufacturing keiretsu. The Subaru automatic transmission, known as the 4EAT, is also used in the first generation Nissan Pathfinder. Speculation has suggested that it was Subaru that introduced Renault to Nissan, when Renault asked for assistance in all-wheel drive (AWD) technology, and when FHI might have suggested that Renault discuss their plans with Nissan, the discussions may have been a contributing factor to the currently successful Renault-Nissan alliance. Upon Nissan's acquisition by Renault, its 20% stake was sold to General Motors.
On October 5, 2005 Toyota Motor Corporation purchased 8.7% of FHI shares from General Motors who had owned 20.1% of FHI since 1999. GM later divested its remaining 11.4% stake, selling its shares on the open market to sever all ties with FHI. FHI previously stated that there might have been 27 million shares (3.4%) acquired before the start of trading by an unknown party on October 6, 2005, and speculation suggested that a bank or perhaps another automaker was involved. After the purchase, Toyota announced a contract with Subaru on March 13, 2006 to use the underutilized Subaru manufacturing facility in Lafayette, Indiana, and Toyota announced plans to hire up to 1,000 workers and set aside an assembly line for the Camry model, beginning in spring 2007.
During the brief General Motors period, a "badge engineered" Impreza was sold in the United States as the Saab 9-2X. An SUV (Subaru Tribeca / SAAB 9-6X) was also planned but the SAAB version did not proceed.
Subaru in the United States
In 1965, Malcolm Bricklin started selling franchises for motor scooters that included the Fuji Rabbit and the tiny Subaru 360. Bricklin made a deal with Subaru to introduce those cars to the United States. Malcolm and his partner, Harvey Lamm, formed Subaru of America, Inc. to sell Subaru franchises.
Subaru of America was established in 1968 in Philadelphia and is now headquartered in Cherry Hill, New Jersey. Subaru of America, Inc. moved to its current Cherry Hill, New Jersey, facility in 1986 when it was fully acquired by Fuji Heavy Industries.
In 1989, Subaru and then-partner Isuzu opened a joint factory in Lafayette, Indiana called Subaru-Isuzu Automotive, Inc., or SIA, which initially manufactured the Subaru Legacy and Isuzu Rodeo. In 2001, Isuzu sold their stake in the plant to FHI for $1 due to flagging sales and it was renamed Subaru of Indiana Automotive Inc. SIA has been designated a backyard wildlife Habitat by the National Wildlife Federation and has achieved a zero-landfill production designation. Ironically, Subaru and Isuzu were both under the General Motors umbrella from 1999-2005 and part of the Toyota group from 2007 to the present.
Subaru in Canada
In 1976, Canadians got their first exposure to Subaru vehicles when Subaru Auto Canada Limited (SACL) began offering the Subaru Leone. In 1989, the privately owned SACL was purchased by the Toronto-based Subaru Canada, Inc., who, under the guidance of parent company Fuji Heavy Industries, began an expansion process that would eventually see over 100 Subaru Dealers in operation across the country.
Subaru Canada, Inc. is a wholly owned subsidiary of Fuji Heavy Industries of Japan. Headquartered in Mississauga, Ontario, the company markets and distributes Subaru vehicles, parts and accessories through a network of 88 authorized dealers throughout Canada.
Marketing efforts
In the 1970s, the company decided to expand its model range from small kei class vehicles like the Rex and Sambar and begin to develop larger, mainstream passenger cars like the Leone, and when Subaru continued in their efforts, and introduced the Legacy in 1989, it was a sales success and a new direction for the company. Subaru decided to offer more products due to the Plaza Accord agreement of 1985 which made the value of the yen stronger in exchange rates to the dollar, which had an effect on Subaru sales in the USA. The creation of the Legacy was influenced by Subaru's desire to compete with successful Japanese carmakers Toyota, Nissan and Honda, and the Legacy was targeted against the Camry, Stanza, and Accord. The Legacy was considered mainstream in its appearance and a departure from previous vehicles, which had earned a reputation of being "quirky". It was perceived by some as Subaru's attempt to compete with new luxury brands Lexus, Infiniti and Acura, as Japanese vehicles were increasing in popularity, particularly in the USA. Subaru continued their new direction with the controversially styled Alcyone XT (1985), the GT six-cylinder SVX (1992), and the Impreza (1993).
From 1995 to 2000, Subaru ran a series of advertisements for the newly developed Subaru Outback which starred Paul Hogan. The advertisements were intended to highlight Subaru's all wheel drive, and depicted the Outback in a number of rugged Australian locations. The tagline "the world's first sport utility wagon" was successfully used by Subaru, though the AMC Eagle had tried much the same idea, with less success in the 1980s.
Before the Outback was introduced, Subaru sold a badge engineered Isuzu Trooper in Japan as the Subaru Bighorn.
Some of the advertising slogans Subaru has used in the past include, "Inexpensive, and built to stay that way", "The World's Favorite Four Wheel Drive" (in the U.K.), "We're building our reputation by building a better car", "The beauty of all-wheel-drive", "Think, Feel, Drive", and currently "Love. It's what makes a Subaru, a Subaru".
As a result of this refocused advertising campaign, Subaru products began to attract a following among the young and educated, and as a lightweight, affordable, economical SUV alternative to the likes of the Ford Bronco and Jeep Wagoneer or the exclusive Volvo. Subaru was among the first automotive companies to market to gays and lesbians in the US. Subaru has historically been popular in US regions such as the Pacific Northwest, the North American Rocky Mountains region, and
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