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

South Korean carmaker Kia will try to follow up the success of its Sportage compact sports utility vehicle by introducing a smaller SUV (subcompact) in the United Kingdom in the...
by - October 18, 2017
It can no longer be denied that Jaguar Land Rover wants to design some more hardcore type versions of their SUV range --- soon after launching the Discovery SVX only...
by - October 18, 2017
Motorists in the United Kingdom who intend to purchase the new 2018 Hyundai Kona subcompact sports utility vehicle could start placing their orders on November 2, 2017. Marked by Hyundai...
by - October 18, 2017
For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 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