So, where does that leave Subaru? After all, the company has roots in small cars, starting with its first automobile, the downright minuscule 360, all the way up to the off-the-wall, four-wheel drive, three-cylinder Justy and its unconventional CVT.
Subaru spokesman Michael McHale tells Wards Auto, "The thing with the B-sector is you have to ask how you make money at the lower levels. You look at the pricing on the B segment – it's a tough segment to make money." Indeed it is – with base models of some competitors starting just under $10,000, profits are in very short supply.
For an automaker as small as Subaru, taking a risk on what is likely to be an unprofitable model generally isn't a smart idea. In other words, don't hold your breath for another subcompact Subaru any time soon.
[Source: Wards Auto]