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Contact: 

Heather Ward
Subaru of America, Inc.
856-488-5093
hward@subaru.com

Michael McHale
Subaru of America, Inc.
856-488-3326
mmchale@subaru.com 

– The Company Also Had Its Best October Sales for Subaru Forester, Legacy and Outback Models – 

Cherry Hill, N.J., November 3, 2009 - Subaru of America, Inc. announced record-breaking October sales. The company not only had its best October sales ever, but also had its best October sales for the Subaru Forester, Legacy and Outback models. 

The company sold 18,169 units in October 2009 versus 12,917 units in October 2008, resulting in a 41-percent gain year-over-year. Subaru had a 13-percent gain year-to-date with 176,590 units sold in 2009 versus 156,706 units sold in 2008. 

Sales for the following models broke all previous October records: the Subaru Forester had a 13-percent sales increase, the Subaru Legacy had a 112-percent sales increase and the Subaru Outback had a 175-percent sales increase.

“The launch of our Legacy and Outback products is gaining momentum and helping to fuel record sales, while the record breaking success of Forester continues,”  said Tim Colbeck senior vice president of sales, Subaru of America, Inc.  “On top of that the 2010 Subaru Outback received the MOTOR TREND Sport/Utility of the Year Award, making us the first brand with back to back winners of this award. Given this powerful momentum we expect our strong sales results to continue.” 

“Subaru products represent the best all-around package in the auto industry today, because of their AWD capability, top safety pick designations by the Insurance Institute of Highway Safety (IIHS) and significantly lower cost of ownership,” said Thomas J. Doll, executive vice president and COO, Subaru of America, Inc.  “In addition, the Subaru Outback and Forester models offer customers all of the utility of an SUV, but with the fuel economy of a passenger car. 

About Subaru of America, Inc.

Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan. Headquartered in Cherry Hill, N.J., the company markets and distributes Subaru Symmetrical All-Wheel Drive vehicles, parts and accessories through a network of approximately 600 dealers across the United States. Subaru boasts the most fuel-efficient line-up of all-wheel drive products sold in the market today based on Environmental Protection Agency (EPA) fuel economy standards.  All Subaru products are manufactured in zero-landfill production plants and Subaru of Indiana Automotive Inc. is the only U.S. automobile production plant to be designated a backyard wildlife habitat by the National Wildlife Federation. For additional information visit www.subaru.com.

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The good showing is an important step in Volkswagen’s goal of again becoming a major player in the U.S. import auto market. The company’s plan is to increase its U.S. sales from last year’s approximately 200,000 vehicles to more than 800,000 by 2018, or 1 million vehicles when its premium Audi brand’s sales are added.

The company is building a $1 billion assembly plant in Chattanooga, Tenn., to help it achieve that goal. The facility, scheduled to open in early 2011, will assemble a new midsize VW sedan for the U.S. market, and other unnamed vehicles as well.

Volkswagen and Ford were the surprising top winners in the latest survey, which also included winners from such Japanese import stalwarts as Toyota, Nissan and Honda.

Leading their respective market segments were the Volkswagen Rabbit (Golf) compact hatchback, Jetta midsize sedan, CC premium sedan, New Beetle and Tiguan compact sport utility, as well as the Audi A4 premium sedan.

The Ford Focus compact sedan, meanwhile, led the small-car segment, beating such heady competition as the Toyota Corolla and Honda Civic.

Volkswagen and Ford also were named the “full-line corporate leaders” based on the quality survey results, Strategic Vision said.

“Across their various brands, both corporations are consistently producing vehicles judged high in perceived quality and emotional delight, resulting in models that customers can love,” the company said in an announcement of the survey’s results.

Strategic Vision said the index survey “asks buyers to rate all aspects of the ownership experience from buying and owning to performance and driving - much more than simply counting problems.”

Unlike J.D. Power’s annual initial-quality study, which rates vehicles and manufacturers strictly on the number of warranty complaints to dealers in the first three months of new-vehicle ownership, the Strategic Vision survey takes into account the emotional aspects of ownership - how pleased consumers are with the way their vehicles look and feel.

It’s on that basis that Volkswagen vehicles have a real edge, as they are designed to give a great driving experience and to create an emotional attachment to their owners.

“Results from studies that measure the number of problems or the overall satisfaction of a vehicle do not measure the customers’ commitment to, advocacy for or loyalty to their vehicles accurately,” Strategic Vision said.

It’s clear that consumers will put up with a variety of minor complaints about their vehicles if the overall experience - especially the emotional factor - is good.

“In today’s difficult market, the difference between products that generate consideration, build brands and increase sales versus those that do not is often how much delight and love the product generates with its customers,” said Darrel Edwards, Strategic Vision’s chairman.

Strategic Vision noted that the Mini Cooper was ranked last in initial quality by the most recent J.D. Power survey, but under the criteria used by the Strategic Vision index, the Mini was the highest-rated brand in Total Quality in its price category.

The company also emphasized that even with the financial problems the U.S. automakers have been experiencing, four of the top 10 best-selling vehicles in the first quarter of 2009 were domestics, and that all of the U.S. Big Three - General Motors, Ford and Chrysler - scored well in the Total Quality Index.

GM had four segment leaders, the Pontiac G8 sport sedan, GMC Envoy midsize SUV, Yukon XL full-size sport utility and the Chevy Corvette - the highest-rated vehicle among all of those surveyed this year.

“Customers report that these vehicles deliver what they want from each segment,” Strategic Vision said. “These leaders have delightful interiors, performance and styling providing to customers an added sense of security, confidence, fun and excitement.”

Also surprising, considering that GM is dumping both brands, is that Saturn and Pontiac tied for having the highest Total Quality scores in their segments, Strategic Vision said.

Chrysler raised its scores from last year with the redesigned full-size 2009 Ram pickup scoring the highest of any truck in the 15-year history of the study, Strategic Vision said. The Ram won the top spot for the first time since 1999.

Honda, Nissan and Toyota won two vehicle segments each, but had strong contenders in many other classes, Strategic Vision said.

The Nissan Maxima tied with the G8 in the large-car segment, the company said, and the Infiniti FX was first in the near-luxury utility segment, just two points above the Infiniti EX and BMW X3. The scores were so close that Strategic Vision declared it a three-way tie.

Honda’s Ridgeline compact pickup and Odyssey minivan led their segments, and Toyota’s 4Runner sport utility and new Venza crossover won in their classes.

Lexus was the brand with the lowest number of problems per vehicle, but Strategic Vision suggested that Toyota should focus on improving the overall ownership experience of Lexus vehicles, focusing on “delivering more than basic satisfaction as they build on their foundation.”

The Mercedes-Benz S-class was the model that “defined luxury in its class, leading for the fourth time in the past six years,” Strategic Vision said.

Land Rover’s Range Rover was the top entry in the luxury utility segment, but other Land Rover and Jaguar models also scored highly, the survey showed.

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