Despite Subaru being so popular in America now, the first in the country was a flop
- Subaru is one of the world’s most well-known car brands
- The Japanese marque is also extremely popular in the American market
- This wasn’t always the case – its first US venture was a flop
Published on May 17, 2025 at 2:19 AM (UTC+4)
by Keelin McNamara
Last updated on May 13, 2025 at 3:18 PM (UTC+4)
Edited by
Tom Wood
Subaru is, without question, one of the world’s most recognisable car brands.
The Japanese marque made itself famous through its motorsport endeavors in the 1990s.
Those efforts culminated in some of the best World Rally Championship (WRC) wins of all time.
However, Subaru had a much more humbling entry into the American market – because its first car was a flop.
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The car company now known as Subaru actually has a very interesting origin story.
Subaru directly traces its lineage to Nakajima Aircraft Company, Ltd.
As you can probably guess, Nakajima Aircraft Company played a major role in World War II.
Following the end of the war, the company was reorganised as Fuji Sangyo Co, Ltd.
In 1950, this company was further reorganised into twelve smaller corporations.
Five of these twelve companies merged between 1953-55 to form Fuji Heavy Industries.
Kenji Kita, the then-CEO, wanted the company to get into the car manufacturing industry.
He gave the company the Japanese name ‘Subaru’ – the name for the Pleiades star cluster.
In 1958, Subaru produced its first mass-produced car – the 360.
The ‘ladybug’, as it was nicknamed in Japan, came with a 356cc two-cylinder engine.
In case you’re thinking it – yes, it looks almost identical to the Volkswagen Beetle.
It was first introduced to the American marketplace in 1968 to compete with Volkwagen’s marquee car.
And, despite targeting the Beetle in America, it failed massively.
Aside from looking like a copycat, it was massively underpowered compared to the 53bhp Beetle.
Another factor as to why the 360 failed was its abysmal lack of safety.
Because it was a small city car in Japan, it was not subject to the usual stringent safety regulations.
Unfortunately, in the land of giant cars of America, its size was a huge concern for buyers.
An independent crash test once saw an American car’s bumper land right in the passenger compartment.
Ultimately, Subaru and other Japanese cars would slowly begin to become very popular in America.
The Oil Crisis of 1973 saw demand spike for small, fuel-efficient and economical cars.
And Japan’s automotive industry was lying in wait to sweep up an eager, converting market.
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Keelin McNamara is a content writer at Supercar Blondie from Ireland, covering cars, technology, and lifestyle. Despite being a Law graduate, he discovered his passion for journalism during the COVID-19 pandemic, and has worked in the industry ever since. Outside of work, he is an avid MotoGP fan, and is a self-confessed addict of the sport.
