Following a board meeting, top executives from Fuji Heavy Industries (FHI) have decided to rename the company as Subaru Corporation. In a statement issued by FHI, implementation of the name change is subject to shareholder approval for amendments to the Company’s Articles of Incorporation at the 85th General Meeting of Shareholders scheduled for June 28, 2016.
FHI, known as Aircraft Research Laboratory when it started out in 1917, also builds aeronautics and industrial needs but the company is best known for producing Subaru vehicles. The company first entered the automotive industry with Subaru in 1958 with the 360 kei car. Nowadays, the Subaru brand is responsible for bringing in the most profits for the firm. Last year, Subaru sold 957,900 cars with 630,000 cars in the US alone. The North American market remains to be Subaru's biggest market.
The Subaru brand has also helped FHI achieve yet another fiscal year record. FHI's net income leaped by 67 percent at $ 3.88 billion dollars while revenue jumped by 12 percent to $28.72 billion. Subaru vehicles are distributed in 90 countries and the company projects selling over one million vehicles in a year by the end of 2017.
In addition, Subaru is following the Prominence 2020 vision which was announced back in May 2014. According to FHI, the see Subaru as, “a high-quality company that is not big in size but has distinctive strength” by 2020. To this end, the company is focusing on two initiatives: enhancing the Subaru brand and building a strong business structure.
While the top executives from FHI have announced the name change, it will not be effective until April 1, 2017 which, at the moment, is the tentative date. 2017 also marks FHI's 100th anniversary while Subaru celebrates 60 years in the motoring industry.