While Volkswagen remains obsessed with selling enough cars to become the largest automaker in the world, Subaru remains content with being one of the smallest.
This is the tale of two opposite strategies, and it seems to be paying off for the smaller underdog while the larger champ slowly falls to its knees.
Volkswagen has entered desperation mode and is giving away cars in order to boost its sales numbers. That’s almost a literal statement, as $39/month lease deals on the Jetta have popped up around the country.
Subaru, meanwhile, routinely sells out of its production runs and has no need to slash prices or offer major incentives.
Subaru supplies what the market demands, while Volkswagen tries to create a market and inflate demand. Guess which business model is more profitable?