TOKYO -

Fuji Heavy Industries — maker of Subaru vehicles — recently outlined an aggressive five-year management plan in hopes of ratcheting up North American sales to 380,000 units annually.

Should the automaker hit that target in North America, officials contend that mark will ensure further growth by achieving an annual sales volume of 1 million vehicles worldwide within the next 10 years.

“With a basic philosophy of customers come first, which further incorporates the brand statement ‘Confidence in Motion’ as a guiding principle, FHI’s five-year plan addresses major challenges and sets forth goals,” company officials emphasized.

In detailing this plan called “Motion V” that carries on through the close of its 2016 fiscal year, Fuji and Subaru noted objectives for income generation as well as what they might spend on research and development.

With the 2012 fiscal year straight ahead, the company first gave its forecast for that time frame:

—Sales: 633,000 units
—Net sales: 1,480 billion yen
—Operating income: 30 billion yen
—Ordinary income: 25 billion yen
—Net income: 35 billion yen

Officials made these estimates based on foreign currency rates of 81 yen per 1 dollar and 115 yen per 1 Euro.

Going forward, the 1 million unit goal was broken down this way by the OEM:

—380,000 units in North America
—180,000 units in China
—160,000 units in Japan
—60,000 units in Europe
—50,000 units in Australia
—70,000 units in other regions

Should the company reach those sales marks, officials believe their operating income would swell to 120 billion yen. They said that calculation was based on current standard accounting practices, under operating conditions of a profit margin at 6 percent and estimated foreign exchange rates of 90 yen per U.S. dollar and 120 yen per Euro.

Also during the next five years, the company expects R&D expense to come in at 250 billion yen with capital expenditures taking another 330 billion yen and depreciation settling at 310 billion yen.

“Under the five-year plan, FHI will grow its base of Subaru fans and customers by offering them its core values of enjoyment and peace of mind, which are established aspects of Subaru’s brand identity,” company officials highlighted

“In terms of product development, Subaru continues to build on its expertise in safety technology and driving performance while constantly addressing environmental issues in order to offer environmentally friendly solutions,” they continued.

Examples the company shared as ways to enhance the Subaru product lineup were through the introduction of three all-new models and a hybrid unit that’s planned for 2013.

The automaker also hopes consumer appeal will broaden through the availability in more models of advanced technological pre-crash safety features such as the EyeSight, Subaru’s active driving assist system that uses stereo camera technology.

“In the next five years, the product lineup will be bolstered by the introductions of three all-new models and a hybrid vehicle,” the company reiterated. “FHI will place emphasis on the U.S. and China markets and increase its global sales by 40 percent over the term of the plan.

“Subaru plans to strengthen its production capacity to accommodate the increasing sales efforts, yet always in consideration of the need to hedge foreign currency exposure,” the company added.

Alliance with Toyota

Also included in “Motion V” was Fuji and Subaru collaborating with Toyota Motor Corp. on a jointly developed rear-wheel drive sports car that will be launched in spring of next year.

FHI noted that it will study enhancement of product appeal of the model toward the future.

“FHI, in consultation with Toyota, will pursue synergistic effects by participating in the developmental work on next-generation environmental technologies,” officials explained.

“The new plan specifies goals and measures for growth and operational expansion, and it also reckons overall cost reduction and accounts for the synergistic effects of the alliance with oration,” they continued.

“The plan was made in consideration of FHI’s global level of risk and recent changes in business practices, such as the currently required investment in the development of environmental technology, foreign currency fluctuations and increases in other costs,” they went on to say.

Other Plan Highlights

In wrapping up its presentation, Fuji and Subaru rattled off several other objectives:

—To begin production in China in order to expand production capacity and mitigate the sensitivity of foreign currencies.

—To refurbish the Gunma Main Plant to produce passenger cars instead of mini cars.

—To expand the Oizumi Plant’s production of the new-generation boxer engines that excel in environmental friendliness.

—To begin assembly of KD units in Malaysia, thereby making inroads to the growing markets within the ASEAN Free Trade Area.

—To strive for a 20-percent cost reduction in new models under development despite increasing cost factors, such as for required development of environmentally friendly technology.

—To review and improve the efficiency of all automotive power units so that an average improvement of 30 percent in fuel economy will be achieved across the board in Subaru vehicles.

—To enhance the quality based on the view point of customers and strengthen the global quality control system responding to diversification of sales globally.