New Report - Subaru Just Made A Huge Leap In The Global Race To Electrify Its AWD Lineup

How far along is Subaru Corporation in the global electric vehicle race? Subaru was once the furthest behind, but now Subaru has plans to be a leader.

Subaru was once the least likely automaker to produce new electric vehicles and needed to be faster in developing new EVs. I covered this story 18 months ago when I reported that Subaru was still not sold on having an all-EV lineup. Turn the page to 2024; everything has changed for the small Japanese automaker. 

A new report from Automotive News (by subscription) says Subaru Corporation is about to change its electric vehicle product plan significantly. 

photo credit: Automotive News

AN says, "On January 8, about 2,000 engineers (2,800 people will eventually work there), programmers, and stylists began reporting to work for the first time at a massive global research and development and design center that has opened north of Tokyo. The global race to electrify will be a key focus."

The new seven-story "Innovation Hub" is a state-of-the-art facility that will cater to employees and give them an environment that will inspire creativity. 

"But the real breakthrough comes from new engineering and design tools," says the report.

photo credit: Automotive News

Subaru says it will be able to slash its new electric vehicle costs and development time with the high-tech center in Japan. Subaru executives say the upgrades will help the automaker halve product development lead times and costs while also enabling it to halve the number of parts used and required production processes.

"We are proceeding intending to cut development time, process, and cost in half," Hiroshi Watahiki, Subaru's senior vice president for engineering, said during a facility tour in December.

"By achieving these holistically, we aim to speed up the process, strengthen Subaru's product competitiveness, and satisfy our customers with high quality."

photo credit: Automotive News

As I reported in August 2023, new Subaru Corporation CEO Atsushi Osaki announced the new ramped-up EV plan. The Japanese automaker wants to get half its global volume, an estimated 600,000 units, from full-electric models in 2030. Osaki envisions worldwide sales of 1.2 million vehicles by the decade's end.

As I also reported, Subaru's in-house EV production in Japan will start in 2025, in line with an annual capacity of about 200,000 vehicles. Subaru will add a line dedicated to EV production in Japan around 2027 with an additional capacity of 200,000 cars. Meanwhile, it plans to localize EV output for the U.S.

Subaru puts its money on new EV development.

The report says Subaru spent about $206.6 million on the Innovation Hub, and construction began in 2021. Subaru plans to put $10.3 billion into electrification through 2030. That sum does not include the Innovation Hub but covers $1.7 billion already announced for retooling domestic production.

Global design boss Tatsuhito Itano oversees Subaru's new elaborate design center. Subaru says the new workspace will allow the design teams to work on 13 vehicles simultaneously. 

"Against one wall is a massive liquid-crystal display big enough to simultaneously view virtual renderings of three life-size vehicles," the AN report says. The state-of-the-art building also has excellent 3D printing and virtual reality capabilities.

"This is a significant improvement because face-to-face communication is essential," Watahiki said. "We want to raise ourselves to the world's cutting-edge level."

Subaru Corporation is in the global electric vehicle race to win. Once the furthest behind, Subaru is now a leader in electric vehicle technology. Stay tuned. 

Thanks for reading, everyone. I hope you enjoyed the Subaru EV story. See you tomorrow for my latest Subaru Report.

For additional articles related to new Subaru models, here are a few of my top stories you may enjoy. 

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• The New Imagined Subaru STI EV You Want This Year

I am Denis Flierl, a 12-year Torque News senior writer with 20+ years of Subaru and automotive journalism experience. I enjoy bringing you, the Subaru fans and customers, the most up-to-date Subaru news, reviews, and new model information. You'll find the latest Subaru stories on the Subaru page. Follow me on my The Dirty Subaru website, Dirty Subaru blog, SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

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photo credit: Subaru USA