Subaru’s Innovative 2014 Crosstrek Hybrid Is Destined For Greatness

2013 New York International Auto Show debut. Photo: Subaru.  

Later this year, Fuji Heavy Industries' (NASDAQOTH: FUJHY  ) Subaru will offer its first ever hybrid vehicle: the XV Crosstrek Hybrid. Even better? According to Edmunds, the Crosstrek Hybrid promises to be a resounding triumph. Great news if you're looking for your next great car stock. Here's what else you need to know.

Subaru gets its green on
With a starting MSRP of $25,995, the Crosstrek Hybrid has a number of impressive features. First, it has a hybrid electric drive system, coupled with a 2.0-liter SUBARU BOXER engine that delivers 148 horsepower and 145 lb-ft of torque. Plus, the Crosstrek Hybrid has symmetrical AWD, and an EPA estimated fuel economy of 25 mpg city/33 mpg highway . Further, the Crosstrek Hybrid uses a 13.5-kW nickel-metal hydride battery pack instead of lithium-ion, is build in a zero-landfill plant, and is the lowest-emission, most fuel-efficient AWD hybrid crossover in America. 

2013 New York International Auto Show debut. Photo: Subaru

 

Even more impressive? When Subaru announced the Crosstrek Hybrid in Japan, it had a monthly sales target of 550 units. However, within two weeks of the Crosstrek Hybrid's unveiling, Subaru had received 5,850 orders -- more than 10 times the monthly sales target.

Sky-high September sales

2013 New York International Auto Show debut. Photo: Subaru.

Subaru's non-hybrid Crosstrek model hasn't been around for very long, but it's already a resounding win for the company -- great news for the upcoming Hybrid model. Recently, Subaru reported its best September U.S. sales month in the company's history. Year-to-date sales came in at 313,407 -- a 27.7% increase from the same time last year. Additionally, Subaru sold 3,536 Crosstrek units in September, compared to 192 from the same time last year .

More to the point, sales for the Crosstrek are running nearly double what Subaru projected, and as Green Car Report stated, "combined global demand for the Impreza line, the Crosstrek, and now the Hybrid is so high that the factory that makes all those models is running flat out."  Great news for Subaru, and especially good news for Fuji Heavy's stock, which has gone from $18.10 a share on October 1st, 2012, to $57.61 a share at the time of this writing.  

The CUV hybrid and the future
The crossover hybrid segment is incredibly small. In fact, according to Edmunds the only real mainstream competitor the Crosstrek Hybrid will face is  Toyota Motor's  (NYSE: TM  ) Toyota Highlander Hybrid, which has a staring MSRP of $40,170 . Ford (NYSE: F  ) used to offer the Ford Escape Hybrid, but the hybrid option was dropped following the 2013 model redesign . Consequently, Edmundsstates, "Expect the Subaru XV Crosstrek Hybrid to be a major hit, thanks to its attractive price and lack of competitors."

2013 New York International Auto Show debut. Photo: Subaru.

 

For investors, the above paints a very attractive picture. What's more, as I've written before, Fuji Heavy saw its operating income jumped 301.8% in its first quarter, and net income was up 196.4%. That, in turn, caused Fuji heavy to raise its projected FY2014 Full-Year forecasts, and it even stated that, "Net sales and all profit figures are to each hit an all-time high in FHI's history." Clearly, good news for investors. Accordingly, Fuji Heavy Industries could make an attractive addition to your investing portfolio.

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Read/Post Comments (4) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 13, 2013, at 11:17 AM, WXYALTF wrote:

    "...the Crosstrek Hybrid uses a 13.5-kW nickel-metal hydride battery..."

    This must be a misprint. It's not that good of mileage rating for such a large battery pack. If this is true, they could put a plug on it and buyer could get something near $6k in tax credit. That would make this one sweet deal, but I'm sure this is not true.

  • Report this Comment On October 13, 2013, at 2:01 PM, TMFKSpence wrote:

    Hi WXYALTF,

    It's not a misprint: http://www.subaru-global.com/press/nyas/data/pressinformatio....

    Foolish Best,

    TMFKSpence

  • Report this Comment On October 15, 2013, at 2:31 PM, megadylan wrote:

    I just read the press document and it is very explicit with 12.5 KW and not KWH. Meaning this is probably a very small battery with an output to match the motor of somewhere around 17 hp (For reference a c-max hybrid is around 40 hp electric).

    There is no indication as to the size of the pack in regards to storage capacity (KwH) and based on what I am inferring would not be able to take advantage of any federal rebates.

    Therefore the 26k price tag would be without any clean air rebates.

  • Report this Comment On October 25, 2013, at 4:47 AM, ronniebr1990 wrote:

    In its second year on the market, the 2014 Subaru XV Crosstrek continues as a bona fide success for the small Japanese maker of all-wheel-drive cars. The high-riding hatchback compact crossover seems to appeal to a lot of buyers who don't want the bulk of "compact" crossover wagons that get ever larger.

    This is Subaru's first-ever hybrid model, the 2014 Subaru XV Crosstrek Hybrid. It'll arrive at the end of the year, and promises to find an audience among the brand's often progressive, outdoorsy buyers--many of whom have likely asked for years, "When can I buy a hybrid Subaru?"

    Check preview and features on below link also.

    http://www.carmainc.org/preview-of-subaru-2014-xv-crosstrek-...

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