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TOKYO - Subaru will price its large crossover vehicle at about $40,000 when it arrives in the United States in the middle of next year.

The automaker expects the seven-seater, which will be powered by a 3.0-liter engine and feature all-wheel drive, to compete with upscale SUVs such as the BMW X5 and Volvo XC90.

The X5's base sticker is $40,995 and the XC90's base price is $35,475. Both prices include destination charges.

The Subaru nameplate, dubbed the XUV, must satisfy demand from American buyers for "a big but fuel-efficient vehicle," says Kyoji Takenaka, president of Fuji Heavy Industries Ltd., which manufactures Subarus.

"That's a key" to differentiate the XUV from its rivals, he says.

The company will strive to reduce the vehicle's weight to boost fuel efficiency, Takenaka says.

Subaru has set a monthly sales target of 3,000 for the crossover. That plan is expected to increase total U.S. Subaru sales to 250,000 in the fiscal year ending in March 2007. In 2003, Subaru sold 186,819 vehicles in the United States.


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Subaru has an advantage when selling cars. (They offer AWD where most competitors do not).

Subaru has no advantage in the SUV market. I don't think a high end 40k SUV is a good idea for them.

If Isuzu (who specializes in trucks) can't make a go of things over here, I hardly doubt that Subaru will do a better job.
 

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Subaru wants to be a premium brand, but they do have to take things slow. I mean, you can't just wake up one day looking at a $25K Forrester, and the next day you're seeing a $40K crossover. I think this is the problem that happened with VW. They created the Touraeg and Phaeton and put expensive price-tags on it when they knew that the Jetta and Beetle's quality, durability, and affordability had helped it to sell. Now they expect a $40K SUV to sell. Ha-they have gotta be kidding me.
 

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If Subaru went from selling the 2-stroke 360 (from 1967) to selling the new SUV, I'd have to agree with the room. As a matter of fact, I had a problem with the idea of an Subaru taking on the likes of Lexus (RX330) when I saw the upcoming model. But I have changed my tune, slightly.

Subuaru currently sells the Outback with a six-cylinder in the $30k price range. This means that the Outback Limited isn't all that much less expensive than the Lexus ES330 (I know, there's a price difference...but it's not all that great). A $40k Subaru is a dangerous business case...but a $35k 7-passenger SUV could be successful.

Comparing Subaru to Isuzu is just wrong. Isuzu had some minor successes in the past 20 years. Subaru has done very well, especially since the introduction of the Outback. About a decade ago, someone from Subaru told me that they had the most popular car....in Alaska. Even Isuzu can't say that their products outsold all others in ANY state. Aside from the GDI engines, Isuzu hasn't offered anything unique to the States, while Subaru's AWD and 4WD technology has been outstanding for the last 30 years.
 

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Shouldn't this be in the Holden/Saab/Fiat news section? Just wondering!
 

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hahahahaha

They really have some balls. Not very bright though.
 

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Go after the mass-market with US-built Legacys hasn't worked, so they are copying Subaru's strategy in the UK and Australia, where they have been very successful selling the Impreza and Legacy as premium vehicles, backed up by the high-end Mark Levinson sound system and the Sti performance halo. In Australia their market share is three times what it is in the US - rivalling Honda for leadership of the premium segment (against Honda-badged Acura's such as the RSX, MDX and TSX) and 8th place in the sales charts.
 
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