Subaru’s marketing dilemma
22 Apr, 2008
35 Comments 
The joint-venture between Subaru and Toyota has already started presenting small problems for one of the Japanese manufacturers. Subaru’s marketing gurus are working hard trying to figure out how to sell a rear-wheel-drive sports car when they have spent the last 15 years promoting all-wheel-drive.
However with the Big T raising its stake in Fuji Heavy Industries (Subaru’s parent company) to 16.5 percent from 8.7 percent, when there is a will, there is a way. But how will Subaru, which is contributing the majority of components to the project, keep its car from being labelled as a rebadged Toyota?
Last year Subaru only sold 7 percent of Toyota’s global sales volume and despite its small car in the Japanese market, Subaru has built a niche image as an all-wheel-drive specialist. How will the new rear-wheel-drive affect its marketing position?
According to Mat Nagato, chief of overseas sales at Subaru parent Fuji Heavy Industries, careful and delicate marketing will be the key to success when the affordable sports car debuts in late 2011.
” A potential question could be cannibalization,” Nagato said Sunday, April 20, at the Beijing auto show. ” We may lose our longstanding territory, or we may lose the great niche brand image. The potential risk is there. We have to be very smart on marketing strategy.”
The small, affordable and naturally aspirated sports car is destined to revive enthusiast interest in Toyota’s current lacklustre lineup, but I do wonder, if it’s based on the Impreza platform (minus the AWD) uses Subaru’s horizontally opposed boxer engine and other components, why exactly, would you opt out for the Toyota variant over the Subaru one?
Toyota will certainly use the AE86 name for the new car and you can see early prototype images of what the car will look like under the Toyota badge here.
In another bit of worrying news for Subaru fans, the company is expected to receive small vehicles from Toyota Motor Corp. and its minicar partner Daihatsu! Subaru is also rumoured to be the driving force behind the new Celica GT4 project.
How will the Australian market react to having, essentially, the same small sports car selling under two different brands?
No doubt Subaru’s variant will be better equipped and may even receive STis treatment for a hot turbocharged model, but going head-to-head against Toyota will be a tough battle.
One of the original ideas was to divide global markets into Subaru-only and Toyota-only domains, but that has now been rejected.
I put the question to you, would you pay a premium for the Subaru badge over Toyota’s for basically the same car?
Alborz Fallah
Location: Home / Subaru, Toyota, Car News / ...
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April 22nd, 2008 at 12:24 pm
Buzz off Toyota
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April 22nd, 2008 at 12:37 pm
I think I’ve said this before. The Subaru version should be AWD, the Toyota RWD. To do it any other way is nuts.
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April 22nd, 2008 at 12:39 pm
I wouldn’t pay a premium over Toyota for a Subaru, as Toyota’s already have inflated prices.
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April 22nd, 2008 at 12:41 pm
Mainwaring, the issue is that it will be a 1.5-litre, and AWD will make the car heavy and hence slow, if it was a 1.5-litre turbo, then that might work.
I surely hope STi bring out their own variant with a 2.0-litre turbo or a 1.5-litre turbo, cause that would be heaps of fun.
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April 22nd, 2008 at 12:56 pm
Alborz I wasn’t aware that it’s only a 1.5 - if that’s the case even the RWD version will be too slow (especially when you see what a great looker it is). Should be a 2.0 (or 1.5 turbo), with an extra 20kW, AWD and $2K more on the price for the Subaru.
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April 22nd, 2008 at 1:07 pm
So, let me get this straight: a predominantly AWD manufacturer and a predominantly FWD manufacturer come together to make a RWD - hmmm… oh, I get it… it averages out (AWD + FWD)/2 = RWD…
I have to admit, to me this seems like strange symbiosis.
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April 22nd, 2008 at 1:14 pm
Delicate Marketing? There is nothing delicate about a bunch of Toyotaphiles hanging around a Suby jumping up and down singing “Oh What a Feeling”.
But given the dark path of motoring blandness on which Subaru will be forced to embark with its new partner, singing the corporate Toyota song is about as good as it is going to get.
They might even hook in John Laws telling us how he is not getting paid cash for comments from Toyota to sell the new Suby.
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April 22nd, 2008 at 1:50 pm
How could anyone call Subaru bland after the latest WRX?
Something that niche can never be described as bland?
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April 22nd, 2008 at 1:51 pm
YUCK superb Toyota vehicle rebadged as subaru rubbish…NO THANKS
Let them eat cake and drive around in there ugly doofdoof wagon brand car co.
Cheers
F-0
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April 22nd, 2008 at 1:54 pm
anthonii, the current Impreza is bland. No doubt. It looks like a remodelled mazda 3. The bug eye my00 Impreza might of been ugly but was far from bland.
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April 22nd, 2008 at 2:36 pm
This doesn’t make sense.
Surely Toyota have the resources to do it on their own.
Subarus are presently GREAT value for what they offer perhaps Toyota can envisage charging a higher premium for the Subaru lineup and hence a larger profit margin.
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April 22nd, 2008 at 2:59 pm
Maybe an option for them is to have two different levels of vehicle, i.e. a premium version with all the bells and whistles and a simple more affordable version.
If this were the case, Subaru could pass off a premium model better than Toyota, and if Toyota are going to stick the AE86 name to it, then it should reflect the AE86 tradition, that being a simple light weight car that was affordable in basic trim and had the choice of extra chioce options.
As for a 4WD varient being sold as a GT4 & Subaru selling the same thing, it’s a bit like buying a Commodore or a Lexan, its the same crap!! but who would make the most sales be it based on a badge??? As a 4WD, me thinks Subaru.
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April 22nd, 2008 at 3:02 pm
frugal, I do sometimes think you exist in an alternate reality to the rest of us. Superb toyota, rubbish subaru? The last topgear survey had subaru above toyota in reliability and overall satisfaction. Sure styling is interesting on the impreza, but I wouldn’t exactly call the camry’s styling ‘inspired’ either.
As for toyota badged subaru’s, well I wouldn’t touch any subaru that toyota had anything to do with. Unfortunately subaru seems to have adopted toyota’s model for global sales success, just make cars that are good enough with styling that is bland enough to not offend anyone. Out of the current subaru line-up, I won’t be replacing my MY04 liberty with any subaru, despite how much I love them. The new liberty’s have not evolved at all, and the rest of the range is currently bland. At least STi is trying their best with what they are given.
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April 22nd, 2008 at 3:28 pm
The AE86 is now a hero car of Toyota’s. How could the new AE86 be anything else but a Toyota?
If they want to use Subaru parts (I have no idea why you would) they can.
In the end, lots of cars share the same parts these days, but I think Toyota and Subaru versions need to be distinguished by more than a badge to make the marketing work. Maybe the Toyota version can be white and bland (as per usual) and the Subaru version can come out with gold wheels and an aeroplane sized wing on the back.
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April 22nd, 2008 at 4:10 pm
i dont care what toyota do, as long as they add something sporty to there line up.
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April 22nd, 2008 at 4:38 pm
subys not exactly niche market in australia
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April 22nd, 2008 at 4:44 pm
I agree with Phil…. Buzz off Toyota. Unless you encourage Subaru to get back to their basic best.. and build us the semi aggressive, all wheel drive, rough and tumble, notey, rugged, minimilist cars they offered us before the current bland Subie line up, then get away from the drawing board and stick to your refrigerators.
I look forward to the day when I want to buy another Subie again. Its like I’ve lost an old mate with most of the crap they dish up as Subies at the moment.
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April 22nd, 2008 at 6:08 pm
I definately think the answer would be for subaru to do a better equipped AWD version and toyota to stick with a more basic rwd only platform.. therefore subaru could stick with it awd only marketing and price it at a higher more premium price than the toyota.. I would pay more for the suby for sure..
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April 22nd, 2008 at 6:24 pm
Maybe Subaru should create a completely seperate car company; like Toyota did with Lexus; which will focus on RWD cars and Subaru continues with AWD.
In the same way that Toyota make boring uninspiring run-arounds [Yaris] and Lexus make cars with slightly more passion style etc [IS250]
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April 22nd, 2008 at 6:26 pm
J, it’s more like AWD-FWR = RWD
So that would mean all the goodness of Subaru’s best performance value for money minus all of Toyota’s blandness and dullness equals a fun car.
Call me optimistic, but I don’t really care what badge it’s gonna be, as long as it’s cheap, light, realiable and RWD.
More HP doesn’t mean faster on a Downhill Race =)
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April 22nd, 2008 at 7:03 pm
But chances are it’s going to look substantially different. Look at Lexus these days, while still retaining a lot of Toyota mechanicals underneath, the vehicles look substantially different, bar the LX570, which still is a better differentiated model than the last LX.
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April 22nd, 2008 at 9:54 pm
toyota = McCar
Bland, not offensive but lots of people buy them because they just do a job or in the Mc theme stomach fillers
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April 22nd, 2008 at 10:43 pm
subaru and toyota together…. now i understand what went so wrong with the new WRX.
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April 23rd, 2008 at 2:47 am
I really like what Toyota and Subaru are doing here. I don’t particularly mind this whole diluting of image- if Subaru sells their coupe for cheaper, and judging what happened with each generation of Impreza, it will definitely be fugly, I’d buy Subaru’s version over Toyota.
Well, price would be number one reason. Next would be over eager driver nannies, a lack of.
I just want this car asap.
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April 23rd, 2008 at 9:22 am
Toyota have become a cardigan brand in Australia. Camry drivers are now the new Volvo drivers - the worst.
Toyota are great at mass appeal vehicles and corresponding sales but the brand these days is a total snooze-fest.
Aurion = camry
corolla = female’s runabout or company car
camry = A to B boredom in the extreme
Great cars - just bloody boring!
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April 23rd, 2008 at 9:24 am
Tom, you said:
“Out of the current subaru line-up, I won’t be replacing my MY04 liberty with any subaru, despite how much I love them. The new liberty’s have not evolved at all, and the rest of the range is currently bland. At least STi is trying their best with what they are given.”
I own an MY04 Liberty (non-turbo) as well and I hate to say it but I do agree to an extent. I drive an automatic and compared to other autos of this class it is well behind. I am hoping that the MY10 next year (genV) will make up for it and adopt a DSG style gearbox for us auto drivers.
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April 23rd, 2008 at 10:18 am
I hear James.
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April 23rd, 2008 at 12:38 pm
mark i own a 2007 liberty wagon, and mate the only way to go with these cars is in the manual anyway much more fun and more resposive, and with the advantage of being cheaper and better on fuel, also rarer come time to sell..
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April 23rd, 2008 at 1:02 pm
If i was to replace my liberty with a new car now, it would be the new xt manual forster for sure! I have had the pleasure of driving one and they are very refined/quiet, quick and responsive, very practical too,
and I think the new model looks really good just needs nice set of 18″ wheels and decent exhaust..
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April 23rd, 2008 at 7:31 pm
Gee hope Toyota dont wreck Subaru as they build sportier cars then boring Toyota’s. Yawn……..zzz zzz zzz
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April 23rd, 2008 at 11:04 pm
Yeah Toyota is definitely in need of “sportier” cars.
No doubt about that, heck even Toyota agrees.
Its just that everyday drive cars, cars that you dont care if you clock 100,000 Kms a year… cars that you dont mind not getting special high octane fuel, cars that you dont want to pay extra insurance for, cars that you dont want delays in getting parts when you need them ASAP…. basically A to B cars that are reliable… so I agree with James too.
My point, just so that even the young drivers understand is.
When you are on a market for a new car that you want to drive everyday…. Toyota has a good range, some are over priced than other manufacturers, but reliability over 4-5 years you definitely get your moneys worth on a Toyota.
I dont see how someone can justify driving turbo charged cars everyday to work, pay the extra dollars for premium fuel, pay the extra dollars for the 5000km service, pay the HUGE $$$ to maintain engine/body/mechanical parts after about 2 years.. assuming you drive it everyday… because darn it you will NEED to do that if you drive it everyday. If you’re a executive getting six figures a year, fair enough… but for the 97% of daily drivers… I dont see whats wrong with Toyota’s target audience.
I’d drive a corolla or a camry everyday no problems, then take out the beast come weekend.
Thats actually ONE huge reason Subaru opted to “soften” up the WRX. They turned a high maintenance weekend car, to a darn good daily driver in the 08 WRX… lots of whingers dont look at it from value perspective.
Thats why, the hot hatches these days are great alternatives if you just want 1 car that goes hard and is a great everyday driver.
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April 23rd, 2008 at 11:35 pm
Aaah but Jamison old chum - what’s the point in having a nice “beast” and caging it up in the garage all week. You might as well drive it. Now if it was something really special - old clasic maybe or a Gallardo Syder then I would agree with you.
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April 25th, 2008 at 12:30 am
Have you seen the price of engine rebuild for RX-7 FDs?
or Supra RZs?
Body wise, the cars assuming no crashes or accidents (big hits).. will last you 1 million kms or more… welding and materials have safety factors of more than double for “cheap” everyday cars… sports cars have even bigger safety factors on mechanical performance…
And define classics?…. I think some will have different perspectives on what car they are “passionate” with.
I’d still love a “clean” Nissan GTR R32 one day… its trash to a lot these days especially the amount of modified ones on the market getting trashed by 18 year olds…. but a clean un-modified one… well.. to me would be worth garaging and just taking for a spin weekends.
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May 4th, 2008 at 4:08 pm
I think its a great idea for a car. Zippy, good looking and frugal. The best solution is for Subaru (Fuji heavy industries rather) to produce the car and sell it only through Toyota channels.
What ever happened to the SAAB 9-2 “saabaru”?? It was a lovely collaboration. I’d love for them to produce another model together - just fix up the “swedish” interior (v-ugly!!!).
Now Subaru - more efficient boxers please? I would have switched to Subaru a long time ago if only they could manage a decent cut on consumption. It seems to be their achillies’ heel in an otherwise outstanding line-up of vehicles.
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May 17th, 2008 at 12:01 am
James - you hit the nail on the head … and have spoken the Toyota marketing mans darkest fear - yep, Toyota is indeed ‘a cardigan brand.’
So sensible and nice and well… yeeeshh ‘nice’…. and Mazda ..welll……Mazda is just about bringing up the rear, being the younger lad/ladettes ‘car of choice’ [bloody ‘zoom zoom’ here and ‘zoom zoom’ there] - in usually that shocking, god awful electric metallic blue …Oh I cant go on it’s to aesthetically challenging … Please somebody pass me that Fiat Ritmo brochure?
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