Subaru

Subaru

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Subaru (スバル) (/ˈsuːbəruː/ or /sʊˈbɑːruː/;[4][5] Japanese pronunciation: [ˈsɯbaɾɯ])[6] is the automobile manufacturing division of Japanese transportation conglomerate Subaru Corporation (formerly known as Fuji Heavy Industries), the twenty-first largest automaker by production worldwide in 2017.[7]

Subaru cars are known for their use of a boxer engine layout in most vehicles above 1500 cc. The Symmetrical All Wheel Drive drive-train layout was introduced in 1972. Both became standard equipment for mid-size and smaller cars in most markets by 1996. The lone exception is the BRZ, introduced in 2012 via a partnership with Toyota, which pairs the boxer engine with rear-wheel-drive. Subaru also offers turbocharged versions of their passenger cars, such as the WRX, Legacy and Outback XT, Ascent, and formerly the Legacy GT and Forester XT.

In Western markets, Subaru vehicles have traditionally attracted a small but devoted core of buyers. The company’s marketing targets those who desire its signature engine and drive train, all-wheel drive and rough-road capabilities, or affordable sports car designs.[8]

Subaru is the Japanese name for the Pleiades star cluster M45, or the “Seven Sisters” (one of whom tradition says is invisible – hence only six stars in the Subaru logo), which in turn inspires the logo and alludes to the companies that merged to create FHI.[9]

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Subaru Corporation

Subaru Corporation (Japanese: 株式会社SUBARU, Hepburn: Kabushiki-gaisha Subaru), formerly known as Fuji Heavy Industries, Ltd. (Japanese: 富士重工業株式会社, Hepburn: Fuji Jūkōgyō Kabushiki-gaisha) (FHI) from 1953 to 2017, is a Japanese multinational corporation and conglomerate primarily involved in both terrestrial and aerospace transportation manufacturing. It is best known for its line of Subaru automobiles. The company’s aerospace division serves as a defense contractor to the Japanese government, manufacturing Boeing and Lockheed Martin helicopters and airplanes under license. This same division is a global development and manufacturing partner to both companies.

Fuji Heavy Industries traces its roots to the Nakajima Aircraft Company, a leading supplier of airplanes to the Japanese government during World War II. At the end of World War II, Nakajima was broken up by the Allied Occupation government under keiretsu legislation, and by 1950 part of the separated operation was already known as Fuji Heavy Industries.

FHI was incorporated on July 15, 1953, when five Japanese companies, known as Fuji Kogyo, Fuji Jidosha Kogyo, Omiya Fuji Kogyo, Utsunomiya Sharyo, and Tokyo Fuji Sangyo, joined to form one of Japan’s largest manufacturers of transportation equipment.

By late 1980s, the company was a major supplier of military, aerospace and railroad equipment in Japan, but 80% of its sales came from automobiles. Sales in 1989 fell 15% to US$4.3 billion.[2] In 1990, the company faced a loss of over US$500 million. Industrial Bank of Japan Ltd., the main bank of the company, asked Nissan Motor, which owned 4.2% of the company, to step in. Nissan sent Isamu Kawai, the president of Nissan Diesel Motor Co., to take charge of FHI.[3] In 1991, FHI started contract-manufacturing Nissan Pulsar (Nissan Sunny in Europe) sedans and hatchbacks.[4]

Currently, the Subaru Corporation makes Subaru brand cars, and its aerospace division makes utility and attack helicopters for the Japanese Self Defense Force, trainers, unmanned aerial vehicles, and the center wings of Boeing 777 and Boeing 787 jets. In the past, FHI made parts for the Raytheon Hawker and Eclipse Aviation business jets.

In 2003, the company adopted the logo of its Subaru automobile division as its worldwide corporate symbol.[5]

On October 5, 2005 Toyota purchased 8.7% of FHI shares from General Motors, which had owned 20.1% since 1999.[6] GM later divested its remaining 11.4% stake on the open market to sever all ties with FHI. FHI previously stated there might have been 27 million shares (3.4%) acquired before the start of trading by an unknown party on October 6, 2005, and speculation suggested a bank or perhaps another automaker was involved. After the purchase, Toyota announced a contract with Subaru on March 13, 2006 to use the underutilized Subaru manufacturing facility in Lafayette, Indiana, as well as plans to hire up to 1,000 workers and set aside an assembly line for the Camry, beginning in the second quarter of 2007.

In June 2014, the company entered into a contract with Boeing Commercial Airplanes, as one of five major Japanese companies contracted, to build parts for Boeing’s 777X aircraft.[7]

In May 2016, Fuji Heavy Industries announced that it would change its name to Subaru Corporation, with the change effective on April 1, 2017.[8][9][10]

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