BW: Subaru’s Sustainable Drive

Who knew? All these years, we heard the success of Toyota. But Subaru we hardly hear anything about their success and how they embrace (more like embedded) sustainability to their core of their business.

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Who knew? All these years, we heard the success of Toyota. But Subaru we hardly hear anything about their success and how they embrace (more like embedded) sustainability to their core of their business.

In a nutshell, Subaru has zero layoffs (despite recession), zero paycuts and zero waste. Practicing sustainability must be good for their business!

In its 22-year history—a period that has spanned three recessions, a global financial crisis, massive U.S. auto bankruptcies, and the departure of Isuzu, a founding partner, from the operation—SIA has rolled out more than 3 million vehicles and has never resorted to layoffs. Instead, it’s given workers a wage increase every year of its operation. Staffers also enjoy premium-free health care, abundant overtime ($15,000 each, on average, in 2010), paid volunteer time, financial counseling, and the ability to earn a Purdue University degree on-site—all in a state that has lost 46,000 auto jobs and suffered multiple plant foreclosures in the past decade. And the truly astonishing thing is how it achieved all this: through a relentless focus on eliminating waste. “This is not about recycling, or a nice marketing to-do,” says Dean Schroeder, a management professor at Valparaiso University who has studied the plant. “This is a strict dollars-and-cents, moneymaking-and-savings calculation that also drives better safety and quality.”

via BusinessWeek

Author: Dewita

Co-founder Ecotwist Labs.

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