Subaru forecasts 540k US sales in 2015, 940k worldwide

Sat, Jan 17 2015

In the past few years, growth for Subaru in the US has only been rocketing upward. The company went from selling 336,441 cars in 2012 to 513,693 in 2014, easily beating its own forecast. In fact with a 21 percent gain, the region was the automaker's largest expanding major market worldwide. The brand sees no reason for the strong inertia to stop in 2015 and thinks it can do even better.

It actually looks like North America is going to play an even more important role in Subaru's future. According to the company's 2015 forecast, Japanese sales are expected to fall eight percent this year to an estimated 156,000 units. Meanwhile, growth in the US is estimated to climb to the tune of about five percent to a total of 540,000 vehicles. Canada should help things with a seven percent boost to 45,000 cars. The numbers mean that of the automaker's record 940,000 forecasted sales in 2015, roughly 62 percent could come from North America.

To cope with the growing demand, Subaru intends to boost worldwide production and build 920,000 vehicles in 2015, an all-time record of it happens. Further out, the company's SIA factory in Indiana is getting an 18,000-unit expansion "during the first half period of FYE2017" to keep up with Legacy and Outback orders. Clearly, Subaru intends to gain even more ground in the coming years. Read below for its full forecasts.

FHI Announces Production and Retail Sales Plans for CY2015
Automobiles Jan 16,2015

Tokyo, January 16, 2015 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced its annual production and retail sales plans for calendar year 2015.

1.Production

(Units in Thousands)

	2014 Result	'14 vs '13	2015 Plan	'15 vs '14
Japan Production	696	+9%	700	+1%
Overseas Production ^*1	193	+14%	220	+14%
Global Production	889	+10%	920	+4%

< Japan Production >
In prospect of strong sales of the new Legacy and Outback being launched worldwide, Japan production is projected to be 700,000 units, which will be an all-time record for the 3rd consecutive year.

< Overseas Production >
With expected high demand for the new Legacy and Outback, overseas production is projected to be 220,000 units, which will be an all-time record for the 2nd consecutive year.

< Global Production >
Global production is projected to be 920,000 units which will be an all-time record for the 4th consecutive year.

2. Retail Sales

(Units in Thousands)

		2014 Result	'14 vs '13	2015 Plan	'15 vs '14
Japan Sales^*2		170	-6%	156	-8%
Japan Sales^*2	Passenger Cars ^*3	127	+0%	114	-10%
Overseas Sales		744	+15%	784	+5%
	U.S.	514	+21%	540	+5%
	Canada	42	+14%	45	+7%
	China	55	-2%	60	+10%
	Other	133	+1%	139	+4%
Global Sales		913	+10%	940	+3%

< Japan Sales >
Japan sales are projected to be 156,000 units which include a full-year contribution of the Legacy and Outback.
< Overseas Sales >

In prospect of sales increase in key markets including the US and China, overseas sales are projected to reach 784,000 units which will be an all-time record for the 4th consecutive year.

< Global Sales >
Global sales target is 940,000 units which will be an all-time record for the 4th consecutive year.

3. Production Capacity Plans

	FYE2014	FYE2017	FYE2021
Japan	600	630	650
Overseas^*1	170	310	400
Total	770	940	1,050

(Units in Thousands

	2014 end	FYE2017	FYE2021
Japan	629	630	650
Overseas^*1	200	328	400
Total	829	958	1,050

(Units in Thousands)

FHI partly changes the production capacity plans announced in May 2014 in its new mid-term management vision, "Prominence 2020". To meet the high demand for the Legacy and Outback, the capacity of the overseas plant ("SIA" in the US) will be increased by additional 18,000 units during the first half period of FYE2017 and will reach 328,000 units by the end of 2016.
Plans for FYE2021 will remain unchanged from the original announcement.

By Chris Bruce