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Subaru isn't running under the radar any more

Alex Taylor III
2010-11-12

Subaru, which makes a habit of beating expectations, has done it again.

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    Chief marketing officer Tim Mahoney signed on in 1984. After 15 years with the company, he was lured away by the glamour of a job at Porsche, but soon returned to sensible Subaru as Doll's right-hand man.

    It doesn't hurt that the chips have been falling Subaru's way. Crossovers are the fastest-growing segment of the market, so Subaru finds itself in the sweet spot. The strengthening yen makes Subaru's plant in Lafayette, Indiana, where it makes two of its best-selling models, all the more valuable. And customers are beginning to appreciate the benefits of all-wheel drive, which Subaru has made standard since the 1990s.

    To be sure, playing a pat hand is not a winning strategy for the long term. Subaru will be vulnerable when crossovers are replaced by the next hot thing. As customers seek better fuel economy, it will need to add small cars to its lineup, and it will be challenging to maintain its brand identity when it does. And it needs to add some alternative-fuel vehicles to its lineup to maintain its eco-friendly image.

    A turbo-diesel version of its bestselling Outback crossover would be a natural.

    Around Subaru headquarters in New Jersey, there's a saying that sums up Subaru's appeal: You may date a Saab (or substitute the sporty, unpractical brand of your choice), but you marry a Subaru.

    In a difficult and uncertain economic environment, owning a Subaru is the equivalent of comfort food. And Subaru's savvy managers have the recipe down pat.

    Full disclosure: First my mother and now my son have become Subaru owners

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