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Quirky Subaru Continues To Earn Customer Loyalty

Part of Subaru's success in recent years can be attributed to having the right vehicles at the right time, Jewel Gopwani writes, but a lot of it is due to the loyal following the Japanese automaker has built over time. Last year, its sales in the U.S. rose 15.4% in contrast to the overall industry drop of 21%, and its market share grew from 1.4% to 2.1%. So far this year, sales are up 33%.

Because of low inventories, Subaru is able to keep incentives low. It also has some of the highest resale values in the industry, which in turn allows it to maintain its leasing programs even during the credit crisis, which in turn grows its customer base. And a well-educated base it is: 68% of Subaru drivers have at least a four-year college degree, according to J.D. Power.

The company is known as much for sponsoring garden and flower shows as it is for backing a road rally team, Gopwani points out. "We know where our customers are and how to speak to them," says Subaru spokeswoman Heather Ward.

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