The company, however, couldn't be less suited to handle a sales surge. Last year, Toyota, the world’s largest automaker, sold a car about every three seconds, while it took 35 seconds for a Subaru to leave the lot. Almost any car company one can name is far bigger than little Fuji Heavy Industries, Subaru's parent. BMW? More than twice the size in terms of unit sales. Kia? Almost three Subarus. Even Mazda sells 50 percent more cars.

Being small, though, is the reason Subaru has become such a big deal. With manufacturing capacity maxed out, it now has to decide what kind of company it wants to be. Should it expand?

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