Intro
After several years of success, it appears the new decade will lead to different fortunes for Subaru. For the last five months, sales were down primarily due to the chip shortage (1). Each vehicle requires hundreds to thousands of silicon chips for each vehicle. Sales this October were down 40%, selling 36,817 compared to 61,411 in 2020 (1). Fortunately for Subaru, the chip shortage is a systemic issue as all auto manufacturers face production shortcomings due to supplier shortages. To lessen the impact of the chip shortage, General Motors is removing popular options on some models like heated seats, as heated seats require silicon chips to function (2). The main reason for the chip shortage is production temporarily ceasing at the silicon chip factories due to COVID-19, along with other supply chain issues. Unfortunately, Subaru has other issues dimming its future.
The new WRX
The Subaru WRX is a cornerstone for the brand. The WRX’s popularity launched from its domination along with its top rival Mitsubishi in the 1990s World Rally Championships, which the WRX (World Rally Experimental) comes from (3). The production Subaru WRX design and engineering deliver the driver a similar, road-legal experience. The rally theme of the WRX gives it a loyal following making it a sales success for the company. However, in 2021 Subaru released a new model update for the WRX, and the feedback on the WRX is not positive.
The discussion on the new WRX is mostly negative. The styling of the WRX is the main driver of negativity in the discussion. Leading some individuals to try and “fix” the model’s styling issues. Most of the styling concerns are over the high use of black plastic body cladding a style which was most popular 30 years ago (4). The previous generation WRX, which is still in production, is a sleeker design compared to the new generation. Interestingly, the current generation model saw a significant sales increase after the next-generation model was released, selling 2,786 WRX and STI models in America for October 2021 (1). Sales are up for the WRX; shouldn’t that be good? Somewhat… it is concerning, though with the context of the Subaru communities’ general distaste of the next-gen model. These increased sales could be from the most loyal Subaru followers trying to purchase the last WRX’s of the current sleeker design before the next generation is only available. Some of the casual WRX fans or those who cannot justify buying a new car currently and distaste the new WRX’s style. Will they purchase from another brand?
Competition
In the sport sedan/ hot hatch category, the competition is heating up. Volkswagen has just released their new Golf GTI, and Golf R. Honda just released their Integra, Civic SI, and soon to release the Civic Type R. These new models could deter Subaru’s fans from purchasing the new WRX, as the Golf is more luxurious, and the Honda offerings have better handling. But the WRX is better for off-road rally conditions, and properly communicating this strength can get them out of this situation.
Why This Style?
Why did Subaru add so much plastic body cladding to the new WRX? Its functional purpose is to protect the cars paint from rock chips when driving on dirt “rally stage roads”. This protects the WRX from rust buildup, especially when driving in snowy conditions. Tackling these conditions is what the WRX is built for.
What Should Subaru Do?
Firstly, Subaru should post press releases on how the next-generation WRX is more capable and durable in all weather conditions than the previous generation. This has somewhat already been done, however, Subaru should directly mention the benefits of the plastic body cladding.
The WRX model shown should be an off-road trim spec for the Next Gen WRX
Creating a dedicated trim will further communicate to the market the purpose of the WRX, its all-weather abilities. Then, Subaru should create a sport trim of the WRX, changing some of the black plastic body cladding metal or body-coloured plastic to create a cleaner stylish design like the previous gen. This could end up being what the top trim Subaru STI will become, a street version of the WRX. This would work; however, the STI is traditionally more expensive than the WRX. Paying 5 to 10 thousand more for an attractive Subaru will displease some of Subaru’s loyal fans.
Full Re-design... Unlikely...
Lastly, some are asking for Subaru to completely re-design the WRX. This is possible but highly unlikely. Re-designing a vehicle is extremely expensive. Even the opportunity cost lost from Subaru’s top engineers redeveloping a completed car instead of redeveloping an obsolete model is financially unwise. Also, it is likely the stamping and tooling of the new generation of the WRX is complete, meaning any changes will require even more costly R&D for production. It is unlikely that any significant styling changes will occur in the WRX for the next three years. Therefore it is best for Subaru to make the “off-road” style WRX that is already shown to the public and a “sport” style WRX with only a few new or painted body panels to clean up the off-road design.
Sources
- https://www.courierpostonline.com/story/news/2021/11/03/subaru-october-sales-down-semiconductor-shortage/6274555001/
- https://www.autonews.com/automakers-suppliers/gm-removes-popular-heated-seats-option-much-lineup-due-chip-shortage
- https://www.johnsonsubaru.com/subaru/wrx-sti-explanation.htm#:~:text=The%20name%20itself%20stands%20for,all%2Dwheel%20drive%20and%20turbocharged
- https://www.motor1.com/news/532839/2022-subaru-wrx-unofficial-rendering/
