Business Services Industry

Parent firm plans to extend Subaru into premium-car brands.

Knight Ridder/Tribune Business News, August, 2004

By Harold Brubaker, The Philadelphia Inquirer Knight Ridder/Tribune Business News

Aug. 13--Subaru has long had a reputation in this country for selling rugged all-wheel-drive vehicles popular with outdoors types.

Now, the Japanese carmaker's parent, Fuji Heavy Industries Ltd., wants to raise Subaru's image into the realm of premium-car brands -- such as Audi, Volvo and Saab -- without alienating loyal customers.

Industry analysts said Subaru, which has its U.S. headquarters in Cherry Hill, was following a trend among automakers with middle-market brands. The goal is to charge more and increase profitability.

The Subaru plan calls for Fuji to make higher-quality cars with more creature comforts and sleeker, European styling....

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