Subaru ends production of low-profit minicars, will focus on profitable models

Article by Anita Panait, on March 2, 2012

Fuji Heavy Industries, which produces Subaru, is discontinuing the production of minicars to focus on more profitable small and midsize models. The company refuses to expand its production from minicars to large passenger, as it lacks the capability to so. The carmaker is ending minicar production, although they are still widely popular in Japan, where they account for over a third of the market.

Fuji Heavy will terminate production of the Sambar, which was launched in 1961, this week due to low profit margins on the model. The company disposed around 3.7 million of Sambars for the past years.

Unlike Fuji Heavy, other Japanese carmakers will continue to pounce on the popularity of minicars. Nissan and Mitsubishi created a joint venture in 2011 for minicar development while Honda is adapting mini-vehicle technology for larger passenger cars.

According to Fuji Heavy corporate senior vice president Motohisa Miyawaki, the same number of engineers is required to develop minicars as for larger passenger vehicles.

As a result, the company will concentrate on developing horizontally opposed engines, and creating four-wheel-drive and crash safety technologies, in order to develop offerings that would make unique from its rivals.

Miyawaki emphasized that by shifting resources to other vehicles, the company was able to become more nimble with development. An example would be the Subaru XV, built based on the widely popular Impreza.

The company will roll out its latest sport utility vehicle in June 2012. Since Fuji Heavy has a capital and business alliance with Toyota, the former will still obtain mini-vehicles from latter’s subsidiary Daihatsu.

Daihatsu developed the recently unveiled BRZ sports coupe, which is powered by the trademark of “flat four” horizontally opposed engine. Toyota has its own version of the sports coupe dubbed the GT 86. [source: Just-Auto]

Topics: subaru, production

If you liked the article, share on:

Comments

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries