Subaru taking the simple approach
Less is more is a mantra that’s working well for Subaru in New Zealand, writes Rob Maetzig.
Everyone’s heard of the ‘‘Kiss’’ principle. That’s the acronym for Keep It Simple Stupid, and it essentially tells us that things are better if kept simple rather than made complicated.
Apparently the acronym had its beginnings at aircraft manufacturer Lockheed, where engineers challenged themselves to design new jets that were simple enough to be repaired by an average mechanic in the field under combat conditions.
These days the acronym is used everywhere – and if it isn’t, maybe it should be. For example, in news journalism young reporters are taught that we don’t have electricity outages, but power cuts. It’s not prior to, but before. It’s not 3.30pm in the afternoon, but 3.30pm.
The motor industry could learn a thing or two from the Kiss principle. It seems to me that some manufacturers try so hard to cover every possible market segment that they end up with an array of vehicles so big and complicated that it all becomes very confusing.
Then there is Subaru New Zealand, which is an outstanding example of the benefits keeping things simple. Or maybe put another way, that less can be more. And there’s no better illustration of that, than its Impreza hatch.
When Impreza was first launched in New Zealand 25 years ago there were up to 16 different versions available for purchase. But now – and a lot of this is to do with the burgeoning popularity of the SUV – the selection has been reduced to just one model.
But what a model it is. It’s less, as in on sale in New Zealand for an impressively low $29,990. But it’s more, as in being a 2.0-litre hatch with all-wheel drive, with the agility that comes from being the first Subaru to be built on the brand’s new global platform, and offering the safety benefits of the company’s EyeSight driver assist system.
This Subaru really has been the new car buy of the year in New Zealand. And it’s all been so simple too. The price has been so sharp there has been little to no room for discounting negotiation. If the Impreza’s pricing had been in the early $30,000s the potential for discounting would have entered every sales equation. But with the razor-sharp pricing this hardly needed to happen.
Little wonder then that New Zealand’s initial allocation of 300 Imprezas has completely sold out, with no more due until September – if Subaru NZ can get further cars.
The company’s managing director Wally Dumper is confident this will happen, because the Japanese are impressed with how well the Impreza has sold here. ‘‘Impreza has been dead-right product at a dead-right price,’’ he says. ‘‘When we were negotiating the first allocation of Imprezas, we knew we probably needed around 500 of them, but that wasn’t possible at the time because of demand in other parts of the world. Now we’re confident we’ll be getting a few more.’’
Subaru NZ is now preparing for the arrival of another new vehicle that promises to be more popular than the Impreza if the pricing is right – the nextgeneration Impreza-based XV compact SUV. The vehicle is scheduled for a June launch in New Zealand which will be well ahead of places such as the US where it will be sold as the CrossTrek, and Europe.
‘‘We’re trying to get the same allocation as last year with the current XV, which is 400 units,’’ says Dumper. ‘‘The existing XV sells from $37,990, and it sells very well. We’re working to convince Japan that if we can keep things simple by offering the new model at that price, or as close to it as possible, then it will prove at least as popular as the Impreza.
‘‘We think we’ve made a very important statement with that Impreza.’’
And talking about keeping things simple, Fuji Heavy Industries, the manufacturer of Subaru vehicles, has just changed its name to Subaru Corporation. Affiliated companies in the US, Beijing and Singapore have also changed their names.
Said Subaru Corporation CEO Yasuyuki Yoshinaga: ‘‘We have long strived to make excellent products. In recent years our effort has been expanded from making good products to delivering distinctive value.
‘‘This change to the company name declares Subaru’s determination to thrive as a brand that delivers value.’’
In other words, more for less. It’s simple, really.