Subaru Rules the U.S. Auto Market in March

Published: Apr 14, 2014

motorblog / Foter / Creative Commons Attribution 2.0 Generic (CC BY 2.0)

Subaru is making a splash on the American market these days. The company’s sales rose 21.2% in March, or a total of 44,479 vehicles. In other words, its share of U.S. car sales amounted to 2.9%.

Experts say, however, that Subaru’s success was due to the fact that supplies were low correlated to the demand.

Edmunds released a study indicating that in March, Subaru dealers had only a 25-day supply, also known as “days to turn,” while the industry average is 40 days.

The term means an “average number of days vehicles were in dealer inventory before being sold during the months indicated.” Within the industry, the “days to turn” is somewhat a critical measure of demand.

In comparison, Honda dealers’s supply was 65 days in March, with sales dropping by 2% to 133, 318 vehicles.

On the other side, luxury imports such as Mercedes, Lexus and Audi had low days to turn, but it’s a well known fact that their price is more than $50,000.

Subaru’s price tag is closer to $25,000. Another interesting fact is also that J.D. Power 2014 U.S. Vehicle Dependability Study rated the company and its products way above the average – it matched BMW’s score.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.