Subaru Reports US Sales Growth

Things are looking better for Subaru owner Fuji Heavy Industries, as the auto brand has improved its US sales by 20 percent. This is the only US sales rise this year, apart from Korean rivals Hyundai Motor Co and Kia Motors Corp, giving Subaru the same market share as Volkswagen AG. About 16.5 percent of Fuji Heavy Industries is owned by Toyota Motor Corp.

"We've identified the United States as the single-most important market under our medium-term strategy, and we're boosting our share there," Fuji President Ikuo Mori told Reuters in an interview.

"Our revenue and profits are still low, however, and conditions are very tough. But my feeling is that things are gradually getting better," Mori said, noting the company's new aim is to return to an operating profit for the financial year to March 2010.

Subaru is looking good as its U.S. sales grew 13 percent in the first 10 months. The demand for the Forester and Legacy models was better than expected, especially thanks to the government cash-for-clunkers scheme. This is really good news considering that the overall market dropped 26 percent in the same period.

Just like other car manufacturers from Japan, Subaru has troubles due to the dollar’s plunge. The US dollar reached a 14-year low on Friday of 84.82 yen. Fuji Heavy is making progress in lowering its high fixed costs by 10 percent. "We're basically on track to lowering our costs. Now if currency rates were where they were last year, I'd be smiling more," said Mori.