12 March 2019

Subaru is in the midst of a turnaround plan with the aim of putting the brand first for dealer and customer satisfaction after years of being “stuck in the WRX past”, according to Torbjorn Lillrud who is automotive development director for Subaru’s UK distributor IM Group.

“One year ago IM decided that to change Subaru due to it being stuck in the WRX past,” he said speaking to Auto Retail Bulletin and referencing the world rally derived performance cars on which Subaru built its brand during the mid-90s and early 2000s, but which were only finally discontinued last year.

“We had a brand problem in the UK,” Mr Lillrud added. “We told the dealers a year ago what we planned to do and we’re doing it.” Under the plan Subaru intends to sell 4,000 cars this year, up from 3,500 in 2018 and then move on to 10,000 “very soon with an ambition of 20,000,” he said.

Mr Lillrud claims this will, in part, be achieved with new product and better marketing, which he said would increase by 50% this year.

He pointed out that over the past year Subaru had already improved its position from 24^thin the NFDA survey in August 2017 to eighth in the current standing.

Subaru’s UK managing director Chris Graham, who has been hired to achieve this turnaround, said that as sales grew the network would grow to around 100 franchise points, up from 76 today. “75% of our current partners will stay with us for this journey,” he added.

Mr Graham said that there would not be any need for larger premises and that the current five-car showroom requirement was enough. He said that the growth in retailer numbers would come from small privately-run groups and current owner-operators.

Tags: Chris Graham, IM Group, NFDA, sales, Subaru, Torbjorn Lillrud, turnaround, volume