A new global business strategy has Subaru eyeing massive growth in North America, Japan and China along with increases in productivity, profit and product development.
The plan, dubbed Prominence 2020, was shared late this week by Subaru parent company Fuji Heavy Industries Ltd.
The mid-term management vision seeks to strengthen its competitiveness and business structure for a new stage of sustainable growth of the company.
FHI said it would enhance the Subaru brand and build a “strong business structure” through which it will further pursue added-value business and increase tolerance for changes in the business environment.
In a release posted on the company’s website, FHI noted it recognizes the need to further fortify its business base.
“With significant changes in its management environment resulted from the faster-than-expected growth as well as changes in the external business environment such as stricter environmental regulations, the company faces many tasks to be addressed including compliance with future environmental regulations, production capacity shortages, response to new customers, high sensitivity to currency fluctuations, and challenges to growth of the company’s non-automotive businesses.”
The automaker said it would work on enhancing the brand through six key initiatives including vehicle performance, by becoming the top safety brand in the world and continuing with its environmental efforts with both internal combustion engines and vehicle electrification.
In an effort to develop its business structure, Subaru also said it would target global sales of 1.1 million vehicles with North America as the top-priority market and Japan and China as the second-pillar markets.
Production would also increase both in North American and abroad with a global capacity target of up to 1.07 million units. As a start to its production goals, the company also revealed it would end its current deal with Toyota that has seen Subaru’s Indiana facility build the Camry since 2007.
Production for Toyota will stop there in the fall of 2016. FHI said it would continue its business alliance with Toyota in other products and technology and that its latest decision will have no effect on business performance for FHI.