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Subaru North America CEO Thomas Doll On A Challenging Auto Industry

Chief Executive spoke with Subaru North America CEO Thomas Doll about why auto consumers haven’t embraced electric cars yet, the company’s corporate responsibility initiatives and more.
Thomas Doll, CEO of Subaru North America

Thomas Doll came to Subaru in 1982 to establish the internal audit department and made his way up through the company on the financial side. He saw the Japanese carmaker through the peaks and valleys and saw the company’s evolution into an emerging powerhouse in the North American market.

In the mid-2000s, Doll was appointed president and COO of Subaru North America. At that time, the company was struggling to stand out from its larger competitors. But under Doll’s leadership, the company began an upward climb that made it one of America’s fastest growing brands. Thus when Tomoni Nakamura was looking to find his replacement as CEO of Subaru North America in 2018, Doll was a natural pick.

Doll is leading the company into its next phase of growth as it shoots for 5% market share in America—a significant achievement considering when he started as President in 2006 they were at less than 1% market share. Chief Executive spoke with Doll about his corporate responsibility initiatives, his goals for growth and more. Below are excerpts from this conversation.

What kind of emphasis does Subaru North America put on its CSR initiatives?

The way we kind of describe it internally here, we call it CR, corporate responsibility, and have taken the S out primarily because we believe it is our responsibility, on a deep level, to be able to support our employees first. They obviously come first, but then we want to be able to support our retailers and the communities in which we and our retailers do business. This whole thing started probably back in 2008 when we felt that our customer, being as strong as they are, really didn’t need to have an incentive [to buy], necessarily, at the end of the year, like everybody else was doing.

So what we did is we diverted a portion of the incentive into what we would call charitable works. We identified five partners that we would donate money to. The National Park Foundation, I think you were talking to Will Shafroth. They became one back in like 2013, I believe. They became a national partner for us but more importantly, we changed the program to allow retailers to contribute to their local communities. And they could take a portion of the money that we had and allocate it towards local charities. So we have four national charities, National Park Foundation being one of them, and then retailers, depending on their size, can select one or two local charities that they can donate monies to.

The whole idea was to tie us and the retailers into our local communities and so forth. And this is in addition to what we do with our foundation. It’s really kind of rewarding to see the impact that we’re having in the local communities in which we do business. You know, we’re a car company, and by the way, we are small game compared to some of the other behemoth car companies who are out there, but we still throw millions of dollars around sometimes like it’s a quarter. But when you go into these local charities and you throw…you’re raising, $15,000, $20,000, $25,000 for them and you see the impact that it has on them and their fundraising activities and what they can do with that money…it makes the hair on the back of your neck stand up.

And so that’s kind of what we’re trying to get our retailers to understand that we’re part of something bigger, right? In the age that we live in now, it’s become even more important to be able to kind of give back. And that’s why it’s part of our responsibility. We think it is part of our responsibility. Once our company got to a certain level of success, it became our responsibility to kind of give some of that back. That’s kind of what we’re all about.

How do these initiatives impact the bottom line?

I guess the way I look at it is since we started this, we’ve had 11 years of sales records and 12 years of sales increases. We’ve probably been growing at about a 14% compound in annual growth rate over this period of time since we started this in 2007/2008. So it’s been really rewarding to see the sales. Remember, we grew from selling about 180,000 vehicles a year to this year we’re going to sell 700,000 vehicles. Hopefully we sell a little bit more than that but that’s our target. And so every year, it kind of gains more momentum, you know what I mean? More people become aware of what it is we’re doing and it just puts Subaru in a different line.


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