Subaru looks to grow '24 sales to 680,000 with more inventory, EVs

LAS VEGAS — Subaru laid out its plan to grow its U.S. sales to 680,000 vehicles in 2024 to dealers at the brand's make meeting at the NADA Show. The key will be greatly reducing production interruptions to allow dealers to sell new vehicles from their inventories again.

Last year, Subaru reported U.S. sales of 632,086 vehicles, up 14 percent from 2022. If the company achieves its targets, 2024 would be the brand's best sales year in the U.S. since it sold 700,117 vehicles in 2019.

Jeff Williams, chairman of the Subaru National Retailer Advisory Board and vice president of Williams AutoWorld in the Lansing, Mich., area, which includes Williams Subaru, said dealers are celebrating improved quality, with 2023 marking "the lowest number of recalls we've ever had as a brand."

He said only one dealer asked a question during the meeting, and it involved a customer issue on a repair.

Jeff Walters, who is in his first year as COO of Subaru of America, said the brand is hoping to improve leasing penetration rates to "about 25 percent" from their current 20 percent level. Almost all of the Japan-built Solterra electric vehicles the brand has sold are leases.

Walters also said dealers expressed interest in upcoming incentives and sales programs, but he did not elaborate on them.

He noted that dealers expressed optimism during the meeting about the brand's approach to electrification, which is deeply intertwined with that of corporate partner Toyota Motor Corp. The plan includes the redesigned 2025 Forester, which features a hybrid system sourced from Toyota, as well as new EVs, including a coming Ascent-sized three-row crossover that is to be built by Toyota at its Georgetown, Ky., assembly complex.

"Our joint strategy on electrification is looking pretty good right now," Walters said.