Subaru's Sales Growth Streak Comes to a Halt

Subaru's impressive 93 months of consecutive sales gains came to an end with a 9.4 percent drop in September. All eight models posted declines for the month ranging from a 0.2 percent drop for the Forester to a 61 percent nosedive for the BRZ. Sales of Subaru's bread and butter Impreza, Crosstrek, and Ascent fell by still significant, but not as steep, 5.3, 3.9, and 9.2 percentage points respectively. The WRX, which Subaru counts as a separate model from the Impreza, dropped 42 percent.

Legacy and Outback sales were down 34 and 12.5 percent respectively--perhaps due to the arrival of next generation models on dealer lots. The 2020 Legacy and Outback move onto the Subaru Global Platform, the last vehicles in Subaru's lineup to do so. Their exteriors boast a subtle evolution from their predecessors. Subaru held a study with potential buyers and discovered that participants responded most favorably to the design that changed the least from the old ones. Inside, occupants will find a richer interior with improved materials all around. A vertically oriented 11.6 inch touchscreen commands the center console and contributes to the cars' more premium feel. As on all Subarus introduced within the last couple years, the brand's signature Eyesight Driver Assist Technology is standard.

A turbocharged engine returns to the lineup after a two generation absence. This new 2.4 L four-cylinder unit comes directly from the Ascent and replaces the old 3.6 L flat-six with improved power (260 hp), torque (277 lb-ft), and fuel consumption. The base 2.5 L flat-four now comes with direct injection and a boost in power to 182 hp.

Amid slowing sales across the industry, Subaru has been able to keep its head above water far longer than most. Could Subaru's stumble signify that a recession is definitely on the horizon? It's certainly possible. Conditions are ripe for another economic downturn. Costs of goods and services seem to climb ever higher while wages fail to keep up. As a result, more people turn to higher and longer loans to cover expensive purchases. Consider these statistics regarding new-car loans. According to Experian, the average loan for the second quarter of 2019 was $32,119. In 2017, the Consumer Financial Protection Bureau estimated that 42 percent of car loans were 72 months or longer. Even more worryingly, when people trade for a new car, they often roll debt from existing loans into new loans. Dealing with money that technically doesn't exist is always risky business, and relies on people's confidence in the economy. Economic uncertainty remains high as we near the end of 2019, putting lenders and loan holders in a precarious position.