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Video: Indiana 2009: Lafayette

03:19 min
By Cars.com Editors
October 1, 2009

About the video

Subaru was one of only a few automakers to not see sales collapse in 2009, and senior vice president Tom Easterday says that improved cars and a keen focus were the key reasons.

Transcript

(upbeat music) Well, Subaru has managed to do well during this difficult economic downturn, basically because of the new products that have been introduced and the consumer acceptance of Subaru as a brand.
I think the new Forester that came out in 2008 did extremely well, helped create some brand momentum and we've been able to carry that on now with the new Legacy and Outback, which was just introduced this past summer. So that momentum I think is continuing and consumers especially are reacting I think, to a lot of the new features in the Subaru Legacy and Outback and including the good fuel economy. (upbeat music) Well, I think the city of Lafayette started to feel some effects right away and the county started to feel some effects right away. We are about 10% of the total property tax base for Tippecanoe county, the county where we're located. And that's a pretty heavy thing. When you're paying 10% of all the costs for the schools, for example in Tippecanoe county, that's a significant contribution. So from a tax standpoint, we've certainly made an impact. But I think, even more important than that, the spending in the local economy. We use a lot of local suppliers, particularly for our indirect materials, things that don't go directly into the automobile. But we also have 25 to 30 suppliers across Indiana, many of them within an hour or two's drive of Lafayette. And that has a tremendous impact on Indiana's economy too. (upbeat music) Subaru, we've done well during the recession. We've been able to not only keep our entire workforce, full-time workforce employed, but also a variable workforce because of the production demand we've had, particularly with the new Legacy and Outback. And I think even though we're involved in the auto industry, I think we're viewed a little bit differently. I think there's a little more optimism because of our brand momentum and because of the new products we've got coming out as compared to some of the other automakers. (upbeat music) We've had lot of questions from our associates about the fact that some of our competitors have received government funding and that they are indirectly owners of competitors and that's a difficult proposition, but I think everyone recognized that those companies were in a difficult position and that they would have a tremendous negative impact on the economy if those companies did fail at that time. But I think there's kind of an understanding there. At the same time, we don't want anyone to have an unfair competitive edge with regard to competing with us. (upbeat music) So I think in Indiana, they've been very accepting of international investment. It hasn't really been much of a factor. And I think the made in USA label, it's pretty interesting because we have steel that comes basically from Gary, Indiana, Northern Indiana, that our Hoosiers here at the plant Lafayette make into Subaru vehicles. That's made in the United States. There's no question about that in my mind. (upbeat music)