Subaru teams with Costco
$500 cash cards go to buyers of eligible vehicles
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Subaru of America is the second car company in less than six months to hand out $500 Costco Cash Cards to Costco members who buy an eligible new vehicle and complete a member satisfaction survey.
In a previous promotion, which ran from Nov. 1 to Jan. 3, Costco members bought 5,429 new Chevrolet and GMC light trucks through participating dealerships at prices generally equivalent to those that General Motors offers its suppliers' employees. The members also received a $500 Costco Cash Card if they completed a survey.
The Costco Auto Program arranges no-haggle prices with participating dealerships on behalf of the discount retailer's members. The Costco Auto-linked incentives are on top of any other rebates and incentives for which the customers are eligible.
Subaru's incentive program started March 15 and ends June 15. It covers all new Subaru cars and SUVs except its BRZ sport coupe and the low-volume Impreza WRX and WRX STI.
Buyers who participate in the Subaru program do not get other special pricing that was offered through the GM promotion.
 | Cavallucci: Subaru wants to boost awareness. |
Brian Cavallucci, marketing operations and planning manager at Subaru, says the incentive program is designed to increase awareness of Subaru vehicles among Costco's well-heeled members and to generate sales for dealers who requested the program.
Subaru is No. 6 on the list of brands for which Costco members request a dealership referral. About 125 Subaru dealerships, out of about 620 nationwide, participate in Costco Auto's program.
"Costco customers are smart, educated consumers with good household incomes, and are looking for a great value," Cavallucci says. "Subaru offers safe, dependable, quality vehicles at a good value."
Rick Borg, Costco Auto Program's vice president of program operations, says he expects his members to buy at least 5,000 new Subaru vehicles during the promotion.
Costco Auto routinely displays vehicles of varying brands at Costco stores on a rotating basis and is adding Subaru vehicles more heavily to the rotation during the program, Borg says. Costco Auto is notifying its members about the promotion with banner ads on its Web site and in e-mails.
 | Borg: Costco expects at least 5,000 sales. |
Borg says Costco Auto's recent promotion with GM was successful. Conquest sales of Chevy and GMC trucks in some geographical areas, such as California, Oregon and Washington, were higher than expected, with members' purchases evenly split between the two brands.
"We brought to the table new people to the GM brand," Borg says. "It turned out to be a great program for all parties involved, especially our members."
Costco, of Issaquah, Wash., has 433 warehouse stores in 40 states plus Puerto Rico. Members pay annual fees of $55 or $110 to shop for a range of products at discount prices.
You can reach Arlena Sawyers at asawyers@crain.com.
