What Subaru Changed With the All-New 2015 Outback

Subaru's U.S. chief explains what changed -- and why -- in the all-new Outback.

Jun 10, 2014 at 6:45PM


Subaru's U.S. chief Tom Doll stands with his boss, Fuji Heavy CEO Yasuyuki Yoshinaga, in front of the all-new 2015 Outback at the New York International Auto Show in April. Source: Subaru.

Subaru announced last week that its all-new 2015 Outback would start at $25,745, a price that puts it just about $100 above the starting price of the outgoing model.

That's a tiny increase for an all-new model, but Subaru says it's hoping the new Outback will increase its sales.

That's not to say Outback sales have been bad -- not at all. It has lost some sales recently to Subaru's own Forester, which was new last year. Forester sales are up over 50% so far this year, while the (outgoing) Outback's are up a little over 4%.

But for much of its life, the Outback has been Subaru's best-seller in the U.S. -- and the U.S. is Subaru's most important market. 

Subaru is the automotive division of Japan's Fuji Heavy Industry (NASDAQOTH:FUJHY). It's a much smaller company than Japanese rivals Toyota (NYSE:TM) and Honda (NYSE:HMC), with a much more limited model range. But the company updates and refreshes that model range exceptionally well, and its endearing, long-lived products have earned it fierce customer loyalty. 

Subaru's careful approach to updating its products has worked out very well for Fuji Heavy, and for its shareholders. The stock isn't well-known in the U.S., but maybe it should be: Over the last two years, it has risen more than 250%. 

Subaru revealed the new Outback at a big event at the New York International Auto Show in April. We were there, and we got a close-up look at the new Outback and spoke to some of the people responsible for it. 

We also captured much of the presentation on video to share with you. In the segment below, the third of three parts, you'll see the new Outback moments after it was revealed to the media. You'll also see and hear Subaru's U.S. chief Tom Doll talk about all the ways in which Subaru improved the Outback for the new generation -- without messing with the basic formula that has made the Outback a favorite for so long.

If you missed the first two parts of this series, you can catch them here and here.

Warren Buffett’s worst auto nightmare... (Hint: It’s not Tesla.)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn’t one of them. He recently called it a “real threat” to one of his favorite businesses. An executive at Ford called the technology “fantastic.” The beauty for investors is that there is an easy way to invest in this mega-trend. Click here to access our exclusive report on this stock.

John Rosevear has no position in any stocks mentioned. Rex Moore has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers