Subaru hopes killing its industrial branch will make its car-building division more competitive.
Subaru is known globally for making solid all-wheel drive cars, but the Japanese brand has also been dabbling in industrial equipment for over 60 years. Executives have announced they're pulling out of the industrial segment to focus resources on their successful car-building division.
"By concentrating management resources on Subaru's core automotive business, the company will further reinforce its business structure in the aim of substantially enhancing the Subaru brand and achieving even greater sustainable growth," explained the company in a statement published online.
Six companies came together to form Fuji Heavy Industries 64 years ago, and they each brought a specific area of expertise to the table. In addition to cars, Subaru manufactured generators, general-purpose engines, various types of pumps, snowmobile engines, as well as equipment for agriculture, forestry, and construction, among other machines. Putting an end to this activity will enhance the competitiveness of Subaru cars at home and abroad.
A company named Industrial Products Co. will handle after-sales services for every activity the company has ceased. Subaru isn't as big as rival Honda in North America's industrial sector, but it runs a sales company in Illinois and distributors in over 20 states. Its industrial division was also present in dozens of countries around the world.