Subaru shortage? Company says it has plenty
A spokesman says comments the CEO made to The Wall Street Journal are a 'bit misleading.'
Spokesman Michael McHale told MSN Money that the story, which quoted Fujistu Heavy Industries CEO Yasuyuki Yoshinaga as saying that strong demand could "lead to dealer shortages if trends continue," was a "bit misleading."
In an email, McHale added: "We are selling better than ever but we have more cars now than for a long time too. Our real shortage was after the (2011) tsunami." When asked whether Subaru, whose U.S. operations are based in Cherry Hill, N.J., near Philadelphia, was concerned about shortages, he replied, "To be honest, no. We have more cars in pipeline than we have had for a while."
Subaru, whose models include the Forester (pictured), Outback, Legacy and Tribeca, has seen its sales in the U.S. surge in recent months, jumping by 25% year over year in April alone. That's better than the 18% gain at Ford (F) and the 11% at Chrysler and General Motors (GM).
Subaru's U.S. inventories are increasing, rising recently to a 40-day supply from 18 days, but that's below the 60-day industry average, and further production increases will be difficult, The Wall Street Journal reported.
The attention Subaru is paying to the needs of U.S. consumers is paying off. It is designing wider and roomier cars and bolstering its dealer network in the South, where it has been weak, the paper noted.
In his interview with the paper, Yoshinaga said Subaru will exceed its U.S. sales target of 380,000 vehicles for the business year ending in March 16. Sales were boosted by strong interest in the redesigned Forester, which Edmunds.com said in a review made "one of our favorite crossovers even more appealing." Subaru also maintained its existing prices on most versions of its Legacy and Outback models.
Not surprisingly, shares of Fujitsu Heavy have outperformed its larger rivals such as Honda (HMC) and Toyota (TM) in the Tokyo stock market.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
More on moneyNOW
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The IMF expressed its concerns before the start of today's trading that "excessive risk taking may be building up" with valuations for just about every major asset class looking stretched.
As one can see from the standing of the major indices, that warning went in one of the market's ears and out the other. Actually, we're not even sure it went in one ear. The market started with a bullish bias and has maintained that bias throughout today's session.
The ... More
More Market News
Despite its size, the IPO will create just two new members of the 10-figure club from its executive ranks. A few others could net hundreds of millions.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'