Automotive News Canada - November 2022 - 14

14
* NOVEMBER 2022
Compact or midsize,
Outback still fits in
Although the vehicle
is technically a
competitor to the
Forester, Subaru
says the two serve
very different
customers
By JEREMY SINEK
T ORONTO CORRESPONDENT
WHEN SUBARU MORPHED
its Legacy station wagon into
a quasi-utility vehicle in the
mid-'90s, the resulting Outback
represented the entirety of the
brand's presence in Canada's
growing SUV segment.
Nearly three decades later
- even though the automaker
now has the mainstream crossover
segments covered with the
subcompact Crosstrek, compact
Forester and midsize Ascent -
the Outback remains a key asset
in the lineup.
The sixth-generation
Outback, which received a midcycle
facelift for 2023, is running
second only to the Crosstrek in
Subaru sales this year, according
to the Automotive News
Research & Data Center. That,
however, is an anomaly caused
by supply constraints, Evan
Lindsey, Subaru Canada's car
line manager, said in an Oct. 6
interview.
Normally, the Outback ranks
third in Subaru's Canadian
sales, close behind the Forester
and first-place Crosstrek.
In pre-pandemic 2019, the
Outback's 11,000 sales were virtually
unchanged from 2018.
During the first nine months of
2022, Outback sales totaled 7,484,
down 12.1 per cent from the
same period in 2021.
" Outback is huge for us, representing
approximately 25
per cent of our new-car volSEVEN
MODELS
Outback pricing by trim,
including $1,995 destination:
* Convenience
* Touring
* Onyx
* Limited
* Wilderness
* Limited XT
* Premier XT
$34,690
$38,990
$40,690
$42,990
$45,190
$45,990
$48,390
Whereas the Forester, right, has an upright shape and
the visibility of a conventional crossover, the longer,
lower Outback, above, is more car-like since it is
derived from the Legacy wagon. PHOTOS: SUBARU
ume [year to date], " said Jason
Nevin, general manager of
Stratford Subaru in southern
Ontario.
" The Outback has developed
a following and defined
a niche of its own. Much like
our Forester, very rarely will
anyone opt for another vehicle
when it's time to switch up their
lease, or trade toward their next
new vehicle. "
In overall size, the Outback is
really a midsize crossover, and
that's how it's positioned and
perceived in the United States,
Lindsey said. In Canada, however,
the Outback is priced in
direct competition with compact-crossover
stalwarts such as
the Toyota RAV4, Honda CR-V
and Subaru's own Forester.
The base 2023 Outback starts
at $34,690, including $1,995 shipSamir
Akhavan
MANAGING
PARTNER
416.880.8989 samir@templetonmarsh.com WWW.TEMPLETONMARSH.COM
ping. Subaru held a media preview
Oct. 5-7 in Huntsville, Ont.,
230 kilometres north of Toronto.
PICK YOUR COMPACT
" We haven't actively positioned
it as a compact; that's
just where it fell, " Lindsey said.
And Subaru Canada is happy to
leave it that way.
" We know they're both going
after the same competitor, "
Lindsey said of the Outback and
Forester. " It's just ... creating
more variety and more options
for our customers. We have two
offerings in that space, and they
can choose their flavours, so to
speak. "
Nevin said the two models
complement one another more
than compete.
" Most of our Forester customers
appreciate the taller
seating position and additional
cargo versatility afforded by
the boxier shape. Outback is
different; having been designed
around the Legacy sedan interior,
Outback offers more of a carlike
cabin experience. "
The Forester also needs less
parking space, Lindsey added,
while the longer, lower Outback
appeals to dog owners, skiers
and golfers who value its longer
cargo deck and more car-like
driving dynamics.
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" We don't normally see
much cross-shopping between
Outback and Forester, " said
Nevin, " although it does come
up with some of our conquest
customers. "
Aside from exterior tweaks,
including more black cladding
that amps up the trail-ready
styling cues, the main changes
are electronic. They include
the latest version of Subaru's
EyeSight driver-assist technology
with available Wide-Angle
Mono Camera, which works
with the stereo camera to prevent
collisions with cyclists
and pedestrians. There's also
an updated multimedia system
with available wireless Apple
CarPlay and Android Auto.
A new Onyx trim level features
a grey two-tone interior
with all-weather seat upholstery.
SEVEN
TRIMS HIT 'SWEET SPOTS'
The Onyx trim brings the
number of Outback trim levels
to seven. The Outback and other
Subarus have unusually balanced
take rates for their various
trims, compared with rivals
that are heavily weighted to one
trim level, Lindsey said.
Lindsey: " We haven't actively
positioned it [Outback] as a
compact; that's just where
it fell. " PHOTO: JEREMY SINEK
" That tells us that the way
we're packaging and pricing
the cars, we're hitting the sweet
spots in the segment. "
And Subaru Canada doesn't
limit sales of the base model.
" Dealers can order whatever
the demand is in their market, "
Lindsey said.
While the variety of trims
might seem excessive, he said,
Subaru Canada simplifies
ordering - and production -
by not offering factory options.
Instead, customers can buy
dealer-installed accessories.
" We work really hard to
ensure we're offering exceptional
value, " Lindsey said, as good
fuel economy and high residuals
lower ownership costs.
However, he said: " We tend
not to offer big discounts and
incentives. Because we don't
have those 84-month terms and
the low monthly payments,
there's a misperception the cars
are more expensive than they
are. "
Maximum loan terms run 48
months for leasing and 60
months for financing.
Nevin said his store is also
experiencing ongoing inventory
shortages that are plaguing the
global auto industry.
" Here in Stratford our
new-vehicle volume has
decreased 35 per cent year over
year. This despite having over
65 firm pre-orders in the system
- a number we have maintained
for almost a year now. " - ANC
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Automotive News Canada - November 2022

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