In the past year, we asked your stores to consider the ways you could continue “Shining Brighter.” I am truly proud of all the team members at our retailers who have helped brighten the customer experience during this time. Our continued sales success is an amazing feat, but the commitment to improving relationships with our servicing customers is something that will really make our brand shine into the future.

The results of the recent 2017 U.S. Customer Service Index Study (CSI) by J.D. Power reveal that the spirit of the Love Promise is strengthening inside your service centers. The study shows that Subaru improved 25 points over 2016 for a total CSI score of 818 (the industry average rose 9 points). We climbed five positions in the rankings – moving from 23rd to 18th in CSI scores among all automakers. This is our highest ranking in the last 20 years! And remember, all of these improvements happened during the largest safety recall in the history of the automotive industry. It’s incredible.

I'd also like to deeply thank everyone for the positive efforts that produced significant year-over-year gains in each key CSI category, including: Service Facility (+2.57 pts.), Service Advisor (+3.38 pts.),

Vehicle Pick-Up (+3.94 pts.), Service Initiation (+5.83 pts.), and Service Quality (+10.05 pts.). These are all indications that we are successfully meeting our customers’ expectations, and I know we will continue to do so.

When comparing our CSI survey results to the competitive set of data, our greatest opportunities for improvement fall under the subcategories of: Fairness of Charges, Ease of Driving In/Out of the Facility, and Thoroughness of Maintenance/Repair Work Performed. Please take advantage of the various Fixed Operation initiatives, your field teams and other available resources to help improve upon these key areas. And remember: Consider the well-being of your customers in every decision you make.

As some of you may know, I will be retiring from Subaru of America Inc. at the end of June. It has been a very fast and exciting 31 years, and it has been a pleasure to be a part of the incredible growth of the Subaru brand. I am very confident that this success will continue as we surpass our record accomplishments. As we do, I hope you and your service teams will keep doing things the right way: Live the Love Promise, and keep Reaching for the Stars!

One Last Note: Continue Starward

FixedOpsNewsYour Stores. Your Business. Your News.

A NOTE FROM GARY PALANJIAN: VP, PARTS AND SERVICE

subaru.com/service-parts-accessories

Service, Parts & Accessories Quarterly NewsletterMay 2017

TABLE OF CONTENTSu A Note From Gary Palanjianu Quick Program Overviewu Genuine Subaru Accessoriesu Subaru Ambassador Programu Stock Orders Updateu Warranty Wiper Bladesu Wholesale Conquest Programu Technical Trainingu Subaru-Uu Love Promise Community

Commitmentu SMC Auto-Playlistu Competitive Pricing Updates

Forward-Thinking Quote of the Quarter

“Gary Palanjian has helped lay a strong foundation for the future growth and development of our business. I would like to thank Gary for his 31 years of valuable contributions to

Subaru of America’s success.”

– Tom Doll, President and Chief Operating Officer, Subaru of America, Inc.

subaru.com/service-parts-accessories

GENUINE SUBARU ACCESSORIES QUICK PROGRAM OVERVIEW

Your Guide to All Subaru Fixed Operations Tools

Explore the NEW Quick Program Overview (QPO) on Subarunet! This digital guide lists all the current Subaru Fixed Operations initiatives, and is divided into four key sections: Marketing Communications, Service Solutions, Parts Solutions, and Technical Operations.

Each initiative in the QPO includes:u���A color-coded key for employee/job

position relevance u���A short explanation of what it isu���How it can benefit your storeu���Where to locate additional informationu���Key contacts for support

This guide is designed to help your store generate Parts and Service business while improving the customer service experience.

Check it out now on Subarunet.com:

Parts/Service-Prgrms/Accessories > -QUICK PROGRAM OVERVIEW (QPO)-

SUBARU AMBASSADOR PROGRAM

Amplifying sound and styleThe new 2017 Impreza allows owners to liven up their ride.

Rockford Fosgate® Audio UpgradeCurrently available for both 2017 Impreza models (soon to be available for the new 2018 Crosstrek), this two-front-speaker, amplifier, and digital-signal-processor system produces a loud, clear sound that makes you feel like you’re standing front and center at a live concert.

Crossbar Set - Fixed Cargo space and carrying capabilities can be increased by adding crossbars to the roof. These fixed-style crossbars are exclusively designed for Impreza models (including the 2017 sedan) that do not come equipped with roof rails, and can be installed or removed in minutes.

Aero Splash Guards Aero Splash Guards are now available for 2017 Impreza Sport models. They create a unique, aerodynamic look and help protect the vehicle’s paint from stones and road grime.

Invite a Subaru Ambassador to Your EventsWorking with a local Subaru Ambassador is a great way to promote both your sales and service business. Some retailers have found it beneficial to invite their local Subaru Ambassador to their New Owner Events. Here’s what one of our Ambassadors shared about their experience attending these events at Subaru Superstore of Gilbert, AZ.

“ I like supporting my retailer’s monthly New Owner Events. They work well for me because many of the new owners share my age demographic. It’s very easy for me to relate to them, and I enjoy welcoming them to the Subaru family. This store lets me use an area to setup, and I usually bring copies of Drive Performance and Subaru Rally information with me. Everyone loves the Subaru swag too! As a side benefit, I get to hear more about the latest features and options on the new vehicles to stay up to date.”

In 2017 Subaru had the second largest CSI improvement in the industry. By how many points did our score increase?

Answer on p. 5.

Think You Know Subaru?

T R I V I A

Starting in June —The QPO will be

assigned to all Parts & Service

personnel within SKILS.

STOCK ORDERS UPDATE

subaru.com/service-parts-accessories

WHOLESALE CONQUEST PROGRAM

We’re Off to a Great Start!The Wholesale Conquest Program has experienced some huge momentum as of late, and we’d like to thank our participating retailers. Since the beginning of 2017, we’ve experienced:

Extended Times for Supplemental Stock OrdersWe’re pleased to announce that as of January 16, 2017, a new stock cut-off time was implemented for supplemental stock orders. Retailers who place supplemental stock orders by 10 am facing Regional Distribution Center (RDC) local time will ship the same day. Retailers will still be required to input recommended PRIME and regular stock orders by 10 pm EST, but supplemental stock orders may be added the following morning, if entered prior to 10 am facing RDC local time.

For additional information on the recent changes, please view the Parts Policy and Procedure Manual sections listed below:u���13.2 – Stock Ordersu���13.4 – Will Call Orders

WARRANTY WIPER BLADES

Replacing Genuine Subaru Wiper Blades Under WarrantyWe want to remind all retailers that wiper blade assemblies and wiper blade inserts are considered wear items. Under warranty – when replacement is necessary due to wear, wiper blade inserts should be used to correct the issue unless they are not available. If this occurs, complete assemblies of Genuine Subaru Wipers Blades may be used for warranty replacement instead of wiper blade inserts. Please remind your service staff to inspect existing wiper blades on customers’ vehicles before replacement. If failure is due to physical damage, replacement would not be covered under warranty. This policy can be found in the Warranty Claims Policy and Procedures Manual, section 8.4.44 – Wiper Blades & Inserts. For more information about these programs, please contact your DPSM.

Web-Based Training: Training for the Wholesale Conquest program is now available on SKILS, which will be a requirement for all new enrolling retailers. There are three training modules that must be completed in this order: Overview, CollisionLink Product Demo, and a Post Test. New staff members can access the training modules on: Subarunet > Training > SKILS-Learning System. Once logged into the SKILS system, enter the word “conquest” into the search box.

Field Services: The Field Services Performance Coaching Team will help retailers create conquesting goals, identify opportunities, educate staff to build expertise, increase awareness, review key accounts, and help plan for the future. Subaru subsidizes a large portion of the cost of performance coaching, and the remaining cost is SAF-eligible.

PSX: As of March, 46 retailers have enrolled in PSX. This is almost a 100% increase in two months, and retailer demos continue to grow.

PSX can help retailers, regardless of size, increase their wholesale business by:

u���Analyzing existing wholesale customers to better target outreach

u���Helping increase wholesale parts sales by identifying trends or gaps

u���Exporting target list to Profit Boosters for the creation of print marketing materials

u���Producing customized reports that are automatically emailed internally and to sales staff

Profit Boosters: The redesigned wholesale marketing platform at spbonline.com offers:

u���On-demand marketing mailers and handouts that can be ordered and delivered to wholesale customers to stimulate business

u���Brand-new mechanical parts mailers and collision mailers (including one specifically on price-matching)

u���Up-to-date digital proofs that reflect current coupons and amenities in real time

Supporting Your Wholesale Efforts

260 wholesale retailers are now enrolled!14 additional retailers u

u

u

u 21,000parts converted from non-OE to OE

3 millionconverted dollars

=

non-OE to OE parts on estimates through CollisionLink®72% conversion rate

$500,000increase in retailer profits

We’ve developed the following tools to continue assisting your wholesale parts business.

subaru.com/service-parts-accessories

SUBARU-U

Busy Service Centers: Challenge or Opportunity?

The Value of Hiring InternsThe unprecedented sales growth that Subaru continues to enjoy comes with its share of challenges. As vehicles in operation continue to increase, so too does the need for shop space and skilled technicians to service them. Combining this with the largest automotive safety campaign in history (Takata Airbag Inflator Recall) means your stores have to adapt to meet customer expectations. So now is the perfect opportunity to source interns from Subaru-U for extra help to deal with these service growth issues, while trying to foster positive customer experiences.

Subaru-U interns are valuable assets to your facility even though they are not fully trained to conduct extensive repairs. For starters, utilizing interns to do Multi-Point Inspections – a basic task that may not be performed 100% of the time during recalls – could be a step in the right direction. A thorough inspection shows the customer that you are looking out for their safety and well-being. It could also result in additional revenue for your store.

In the long-run, it’s important to keep these interns engaged to foster a smooth transition into quality technicians. Try rotating them between scheduled service tasks, the Express Service area, and bays designated for campaigns (many retailers have already implemented dedicated shop space for this). Making the most of your available resources will help these interns succeed. Effective mentorship is vital to their success, and teaching them how to utilize resources like STIS can also help ensure that “Fixed Right the First Time” (FRFT) is achieved.

It’s true that rocketing sales and this flood of campaign vehicles won’t last forever. But, if attention is paid to cultivating lost customer business and developing new quality technicians for your store, your service center will be ready for the new growth of repair business that is sure to follow.

For more information, visit: Subaru-u.com or email us at Subaru-u@subaru.com

TECHNICAL TRAINING

Technical Training News and UpdatesCOURSESu���The Engine Service Tips WEB course is now

required; please visit SKILS for more info. u���The Takata Service WEB course is live on SKILS

as a supplement to the service informationu���There is a new two-day safety restraints course

coming in June (check SKILS for scheduling options)

REPORTSu���There are multiple standard reports in SKILS for

service managers. It’s a great place to see who needs new or existing courses.

u���The new Gap Report has been released, and it contains many refinements you requested

RECRUITINGu���If you have a school that you work with, or would

like to work with, and they are not involved with Subaru-U, please fill out an Interest Form on subaru-u.com

u���May and June 2017 are Premium Job Shadow and Intern Commitment months. Please contact your Subaru-U school for the opportunity to bring in quality interns who want to be in the business.

– Contact information for schools can be found at: subaru-u.com

u���Please visit subaru-u.com for current and future changes

FACILITIESu���This summer, the NEW Northern California

Subaru Training Center will open. Stay tuned!

subaru.com/service-parts-accessories

Trivia Answer: 25

We encourage comments and questions. Please send to: fixedopsnews@subaru.com

SMC AUTO-PLAYLIST

The Service Media Center (SMC) Auto-Playlist Take the work off of your service manager – sign up for the auto playlist option on your SMC! We’ll keep the ads fresh and relevant for your customers – at no additional cost to you!

As long as your device is online and connected to Wi-Fi, we’ll deliver updated content to your screens without any work on your part.*

The Auto-Playlist features:

u���FREE activationu���Service Drive and Waiting Room playlist options

u���Quarterly updates by Subaru of America, Inc.u���Ability to keep your custom ads

To sign up for the SMC Auto-Playlist, please visit: tinyurl.com/autoplaylist

Tell us what you think!We’re trying to make the Auto-Playlist feature even better, but we need your feedback first. Share your opinions by taking the survery at: www.surveymonkey.com/r/GBRSTHH

* Please remember that you will still be responsible for updating your store’s pricing. You may refer to the SMC User Guide for step-by-step instructions. Also, see page 8 of the guide to determine if your board is offline.

Competitive Pricing Updates Coming Soon!The first year of the Competitive Pricing Initiative is now complete, and this year’s final pricing will go live May 29, 2017.

In the coming year, we will be shopping five services instead of four. And, your store will have the option to choose the four services to market competitively on your SMC screen and website. We hope you’ll enjoy the newly added feature!

LOVE PROMISE COMMUNITY COMMITMENT

Love Tracker

As a part of their Love Promise Community Commitment, Faulkner Subaru Mechanicsburg of Pennsylvania presented the Silver Spring Township Police Department with a check for $7,900. The money was used to bring a new German Shepard K-9 named Tracker to their team.

“ Our department is extremely thankful for Faulkner Subaru Mechanicsburg and their donation. Without their help, we would not have been able to get Tracker as quickly as we did.”

– Officer David Frascella

Tell us what you hope the 5th service will be! Email: fixedopsnews@subaru.com.We want to know what your teams are doing to fulfill our Love Promise Community Commitment. Email us at fixedopsnews@subaru.com and you may be highlighted in a future issue.

COMPETITIVE PRICING UPDATES