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From my dealership. This sort of sums it up: Low supply, high demand = Greed Opportunity

“What happens next? Gresham Subaru will only be receiving a very small percentage of the 6,000 Solterras allocated for purchase in the United States. Pricing for the Solterra is expected to be announced on April 1, 2022. Due to low supply and high demand, our price will be adjusted at $2,999 above MSRP.”
 

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2019 Ascent Touring, 2022 Kia Ev6
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It's interesting to imagine what kind of impact that might have on the process. I would assume delivery costs would be tacked on to the purchase price while wondering if home delivery would be an option or you would have to travel to a Ford dealership to take delivery. That's just one of many price adjustments the manufacturers could take advantage of to skirt the dealership model.

Also, in Illinois, a $4,000 state tax rebate will go into effect with EV purchases made starting July 1st (plus a rebate of 80% for at home charger installation). But the terms make it seem as it is unique to EV purchases in the state of Illinois at a dealership. Maybe there is gray area, but it would be slightly disappointing to miss out on an incentive due to direct to consumer sales. And yes, that may be a wash (or at least helpful) with the $3,000 to $10,000 dealer markups.
 

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2019 Ascent Touring (me) 2020 Forester Limited (Spouse)
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I heard ford is creating a separate company "Ford model e" and would be able to sell EV's directly to consumers like Tesla. Hopefully, Subaru will follow suit and sell directly to us in a few years.
They have indeed separated ICE from EV & software structurally, although they did not spin off either...both still point to the same place at the top. I didn't read anything about direct sales, but perhaps I missed that. Each company will actually also benefit the other...the EV/Software folks will provide software to the ICE folks and the ICE folks will be providing certain kinds of parts elements where economy of scale benefits, such as certain interior fittings, according to the CNN article I read.
 

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It's interesting to imagine what kind of impact that might have on the process. I would assume delivery costs would be tacked on to the purchase price while wondering if home delivery would be an option or you would have to travel to a Ford dealership to take delivery. That's just one of many price adjustments the manufacturers could take advantage of to skirt the dealership model.

Also, in Illinois, a $4,000 state tax rebate will go into effect with EV purchases made starting July 1st (plus a rebate of 80% for at home charger installation). But the terms make it seem as it is unique to EV purchases in the state of Illinois at a dealership. Maybe there is gray area, but it would be slightly disappointing to miss out on an incentive due to direct to consumer sales. And yes, that may be a wash (or at least helpful) with the $3,000 to $10,000 dealer markups.
I would assume it would be similar to Tesla, you currently get all state incentives when purchasing their EV's.
 

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You might think that, but it's not entirely clear without reading the rather lengthy bill.
Hello, I'm new here today. We've owned Subarus in the past and 3 EVs. We made a reservation with a local dealer for a Solterra. If our local dealer decides to do a "market adjustment" can we change our reservation to a different dealer?
 

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Hello, I'm new here today. We've owned Subarus in the past and 3 EVs. We made a reservation with a local dealer for a Solterra. If our local dealer decides to do a "market adjustment" can we change our reservation to a different dealer?
The only way you’ll be able to change dealers is if you go to Toyota and get the BZ4X instead
 

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Hello, I'm new here today. We've owned Subarus in the past and 3 EVs. We made a reservation with a local dealer for a Solterra. If our local dealer decides to do a "market adjustment" can we change our reservation to a different dealer?
You shouldn't give up, you should try calling Subaru of America and find out what your options are, if/when that happens.
 

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Did you refer them to the new pricing memo from Subaru?
Here's a link detailing it. And here's the text in full.

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SUBARU
Subaru of America. Inc.
One Subaru Drive
Camden. NJ 08103
856-488-8500
www.subaru.com

February 23, 2022

Dear Friends,

We realize that our demand metrics are at record highs and our inventory levels are at historic lows due to a variety of relevant factors including the extraordinary and extenuating circumstances created by the COVID-19 pandemic, labor shortages and global supply chain disruptions. Despite these challenges, new heights in retailer profitability continue to be achieved. We have supported you, our retailers, to help ensure that you are able to continue to honor the Love Promise in all customer interactions. However, it has increasingly come to our attention some Subaru retailers are selling our products at prices which are not consistent with our Love Promise. We are receiving increasing numbers of customer letters and emails voraciously complaining about sales of our vehicles at prices above MSRP. Please see an example of a customer letter on the following page.

We strongly discourage our retailers from engaging in this practice because of the negative impact this can have on the customer experience and our brand loyalty. In addition, such a practice does not fit with the brand philosophy of our Love Promise. That promise to provide our customers with the best purchase and ownership experience in the industry. It certainly does not fit in creating a "Love Promise moment" at the time of purchase. In fact, it gets the relationship with the customer off on the wrong foot right from the start and will harm the long-term loyalty to your store and the Subaru brand. Please believe in our brand philosophy and the long-term rewards will be even greater.

As we discussed at our past National Business Conferences and at various business update meetings, our strategy is to separate "Our Retailers" from the "typical car dealer." Taking advantage of the current market imbalance between supply and demand is something a "car dealer" would do...it's NOT something a "Subaru Retailer" would consider doing. It goes against the "H.E.A.RT." (Honesty, Empathy, Appreciation, Respect, Trust) pillars which is the foundation of our brand. In fact, in the mind of our customers, it can negate all the positive actions you are doing through your Love Promise activations and "Share the Love" in your local community.

We request those Subaru retailers who are engaging in the practice of selling vehicles at prices not consistent with the Love Promise to refrain because of the negative impact this is bringing to our brand.

The current situation is testing our resolve, commitment and discipline to the principals of our Love Promise customer commitment. Please stay committed to our brand philosophy.

We are looking forward to seeing many of you at the upcoming NADA Convention starting on March 10, where we can further discuss this subject and other topics.

Best wishes, continued success and please stay starfull!
Thomas J. Doll
President & CEO
Subaru of America, Inc.

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Now is the time for "Subaru Three". 1-800-SUBARU-3 (1-800-782-2783).

Call them and tell them what the Subaru Retailer in Gresham, OR said. Mention this letter from Thomas Doll, the company President and CEO. Mention the blue parts, emphasize the red parts. Subaru builds its customer base on repeated custom, people that go back their entire lives when it's time to buy a new car. THAT'S what separates a Subaru Retailer from a dealership / stealership. Use the words "Subaru Retailer" repeatedly in describing the local seller and the predicament they've put you in.


The ONLY reason there is more supply than demand is because they limited the supply to ten per dealer. EVERY dealership (sorry: Subaru Retailer) is getting "a small percentage" because there are 600+ retailers in the country. That's ow math works! They have spent no money on any form of advertising, every person that put $250 down sought out information videos on the vehicle, and the company is guaranteeing themselves these sales for the month of release. Every person ordered precisely the EV they wanted, saving Subaru a fortune because they knew months ahead of time what to manufacture with zero waste and nobody making do with a car color or configuration that wasn't their first choice. There WILL be no unsold Solterra EVs on the lot, or commercials to buy the outgoing model next year, because it's not being sold like that at all.

And let us know what the outcome is.
 
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