Subaru's parent company might soon change its name simply to Subaru Corporation.
Subaru parent, Fuji Heavy Industries, will try to take advantage of its automotive arm’s recent success and will likely change the conglomerate’s name to Subaru Corporation. FHI also works in aerospace and makes industrial products, but for the general public auto manufacturing is probably the firm’s best-known business. By switching monikers, the corporation can capitalize on the improved brand recognition, and its customers might also associate the other divisions with the rapidly growing car brand.
Before the switch to Subaru Corporation becomes official, shareholders need to approve the change at FHI’s conference on June 28. Assuming that is a success, the swap would happen on April 1, 2017.
The modern FHI started as Aircraft Research Laboratory in 1917, but multiple reorganizations eventually created the current name in 1953. Its Subaru division entered the auto market in 1958 with the tiny 360. Today, the car maker is likely best known for its standard all-wheel-drive system in models throughout the lineup.
In addition to the possibility of a new name, FHI is celebrating another record fiscal year, largely thanks to Subaru. According to Automotive News, net income jumped a massive 67 percent to 436.7 billion yen ($3.88 billion). Revenue also grew 12 percent to 3.23 trillion yen ($28.72 billion) in that time. North America remained by far the largest market for Subaru’s vehicles because of the 957,900 total volume worldwide in the period, 630,000 of them were from the continent.
Don’t expect this prospective change to mean much for Subaru’s day-to-day operations. “It's a simple name change - no affect on us,” Subaru of America spokesperson Michael McHale told Motor1. However, the switch is an indicator that FHI has faith in the continued success of its automotive business.
Source: Automotive News, Subaru