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I know there's been a general downturn in the market the past few months, but I was not expecting Subaru's streak to end just yet, especially with the recent introduction of some new models. Toyota and Honda took a massive hit, as did other manufacturers.


Either way, that's quite a streak. I think I was most surprised by the fact that Ascent sales fell as well.

I've noticed, in the segments that we are looking at for a new car, that the incentives are getting more aggressive, even on the higher-end stuff. I know it's also end of model year and new model introduction time, but I'm amazed at what some dealers were trying to offer to get us to purchase by the end of September. I'm guessing there will be even more money on the hoods of some of the cars come the end of October.
 

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I was expecting this. They've slowed production until their parts suppliers can improve their defect ratio. Subaru requires 1 defect per million parts, and a few key suppliers weren't making those numbers.

With production slowed, it means delivery is slowed. Sales numbers are based on the number of vehicles delivered.

Anyone who's went on the factory tour recently may have heard about this. SIA was pretty open and honest about it.

Subaru Corp, Subaru of America and SIA are committed to doing the right thing, even though it's costing them sales numbers.
 

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That's a good thing for the consumer. I am sure Hyundai and Kia also had something to do with the decrease in Ascent sales.
 

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That's a good thing for the consumer. I am sure Hyundai and Kia also had something to do with the decrease in Ascent sales.
They're both (H and K) selling at about the same rate as previously, so, I don't think so. Additionally, if anything, they're likely to slow down after the massive recall in late August for the Kia Telluride (all 31,000 of them - all seat belts need to be replaced).
 

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Robert you are correct about the build slowdown and delivery. I ordered my 2020 Ascent on July 20th and did not get my VIN and VON until Sept. 24th. The Ascent is not due in to my dealer until around the 20th. If they slowed to improve some defects then that is great. I am very patient but when I ordered the Ascent it was a 6-8 week delivery. Certainly ready for delivery soon.
 

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I never knew that. I assumed that sales figures involved end user sales not deliveries to dealers. Interesting.
Correct.

So, a sale to an end user requires delivery to the end user. That requires delivery to the dealership first. If the dealer gets 20 cars a month, and then 10 because of a slow down, then cars delivered to the end user match those numbers. Ascents don't stay on the lot, and almost all are built to order.
 

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Correct.

So, a sale to an end user requires delivery to the end user. That requires delivery to the dealership first. If the dealer gets 20 cars a month, and then 10 because of a slow down, then cars delivered to the end user match those numbers. Ascents don't stay on the lot, and almost all are built to order.
I wonder if the slowdown results in buyers just waiting longer (lower deliver rate but larger ordered wait list) or opting to purchase a different model/manufacturer.
 

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I wonder if the slowdown results in buyers just waiting longer (lower deliver rate but larger ordered wait list) or opting to purchase a different model/manufacturer.
Me too. I'm keeping an eye on the sales data. We'll have some inkling in a few days when it all posts.
 

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I was expecting this. They've slowed production until their parts suppliers can improve their defect ratio. Subaru requires 1 defect per million parts, and a few key suppliers weren't making those numbers.

With production slowed, it means delivery is slowed. Sales numbers are based on the number of vehicles delivered.

Anyone who's went on the factory tour recently may have heard about this. SIA was pretty open and honest about it.

Subaru Corp, Subaru of America and SIA are committed to doing the right thing, even though it's costing them sales numbers.
It also does not help the streak when a supplier has suffered a ransomware attack. SIA has shut down it's second shift.

 

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Hmm, maybe that's why I was able to buy a 2020 Limited for $400 over the dealer invoice price last weekend... after substantial dealing and one foot literally out the door that is. I am bummed I didn't get the moonroof though.
 

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They're both (H and K) selling at about the same rate as previously, so, I don't think so. Additionally, if anything, they're likely to slow down after the massive recall in late August for the Kia Telluride (all 31,000 of them - all seat belts need to be replaced).
So you are saying that 8,000 sales/month (H & K) have no effect on the sales of the Ascent?
My local dealer has 15 Ascents sitting on the lot and another dealer about 100 miles away has 19 Ascents sitting on the lot right now (not in transit).
 

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So you are saying that 8,000 sales/month (H & K) have no effect on the sales of the Ascent?
My local dealer has 15 Ascents sitting on the lot and another dealer about 100 miles away has 19 Ascents sitting on the lot right now (not in transit).
No, I'm saying their sales have not changed because of this.

Kia Telluride and Hyundai Palisade both saw declines, and not gains during this time frame.

And your dealership should be well aware that SoA tries to keep some instant buy cars on the lot. Sounds like a new salesperson or one very unfamiliar with how Subies are sold.

Any unsold car on the lot is a tiny percentage of what's sold. That's how Subaru determines how many to send - it's based on how many orders come in for factory built cars, and is a small percentage of the monthly sales.

Subarus don't sit on lots long. And, how many that are sitting on a lot also includes ones waiting for pick up and the test drive vehicle(s) and loaner fleet.
 

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Robert you are correct about the build slowdown and delivery. I ordered my 2020 Ascent on July 20th and did not get my VIN and VON until Sept. 24th. The Ascent is not due in to my dealer until around the 20th. If they slowed to improve some defects then that is great. I am very patient but when I ordered the Ascent it was a 6-8 week delivery. Certainly ready for delivery soon.
When I got my Ascent in November 2018, I had been waiting over 3 months.
 

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I know there's been a general downturn in the market the past few months, but I was not expecting Subaru's streak to end just yet, especially with the recent introduction of some new models. Toyota and Honda took a massive hit, as did other manufacturers.


Either way, that's quite a streak. I think I was most surprised by the fact that Ascent sales fell as well.

I've noticed, in the segments that we are looking at for a new car, that the incentives are getting more aggressive, even on the higher-end stuff. I know it's also end of model year and new model introduction time, but I'm amazed at what some dealers were trying to offer to get us to purchase by the end of September. I'm guessing there will be even more money on the hoods of some of the cars come the end of October.
Tne one thing more than anything else that caused Subaru to miss September was the lack of Outbacks. The 19s sold way better than plan and the lots were thin. 2020s were held up a few more weeks than plan and bingo, lower sales numbers.
 

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Tne one thing more than anything else that caused Subaru to miss September was the lack of Outbacks. The 19s sold way better than plan and the lots were thin. 2020s were held up a few more weeks than plan and bingo, lower sales numbers.
Yesterday, I saw an article that said 85% of all wagons sold in the U.S. are Outbacks. 85%!
 

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Yesterday, I saw an article that said 85% of all wagons sold in the U.S. are Outbacks. 85%!
Yes, they literally outsell every other station wagon in the country, combined.
 
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