Subaru (Part 1): Global sales target of over 1.1 million units in 2020
Planned increases of US production capacity to 400,000 vehicles in 2017
The recent business development at Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, is reported in two separate parts. This report, Part 1, contains a summary of FHI's new mid-term management vision "Prominence 2020" for 2014 to 2020 that was announced in May 2014. It also looks into the company's consolidated financial statements for the fiscal year ended in March 2014 (referred to as FY 2013).
FHI aims to achieve global sales of over 1.1 million vehicles in FY 2020 with annual production capacity of 1.07 million vehicles. Rather than competing with the leading automakers face to face, FHI's corporate vision for FY 2020 is "not big in size but a high-quality company with distinctive strengths."
Partially helped by the correction of yen's appreciation, FHI achieved an operating income ratio of 13.6% in its consolidated financial statement in FY 2013. The company aspires to maintain the industry-leading high profitability by focusing on "enhancing the Subaru brand" and "building a strong business structure" under the new mid-term plan.
Despite the prevailing yen's depreciation in excess of 100 yen to the dollar, FHI plans to increase production especially in the United States. The production capacity at home will increase only by 50,000 units from 600,000 units in FY 2013 to 650,000 units in FY 2020. In contrast, FHI will increase capacity in the U.S. from 170,000 units in FY 2013 to 400,000 units in FY 2020. Overall, FHI intends to increase its overseas production capacity so that it will account for 40% of its total global production capacity, thereby lowering its sensitivity to currency fluctuations.
Subaru (Part 2): To be posted soon
Subaru: FY2012 ends with record sales and net income (April 2013)