Subaru Is Betting Its Future On Being Smarter Than Toyota

When Subaru announced they would drop the Legacy sedan, I was not surprised. Here's why Subaru is betting they are smarter than its partner Toyota. 

I've been saying for months that Subaru should drop the Legacy sedan. Sales have dropped a disturbing amount over the past two years, and I've also said that the Legacy sedan needs a hybrid powertrain to turn things around. 

But Subaru won't give a Legacy Hybrid a chance now that the sedan has been dropped entirely from the all-wheel-drive lineup. Before I explain why Subaru thinks it is smarter than Toyota, what does Subaru of Indiana Automotive, where the Legacy is manufactured, think about the decision?

I asked Craig Coven, Subaru of Indiana Communications and External Relations manager, about discontinuing the Legacy sedan. Craig said, "Legacy production coming to an end is certainly bittersweet news. Many models have come and gone at our facility over the past 35 years, but the Legacy was the first to be driven off our line. While some of our long-term associates have begun to retire, we still have many who were here at that time and are understandably sentimental."

How will the additional free space on the assembly line be used now with the Legacy's exit?

"That being said, we're also excited for the future. Like the decision to bring Crosstrek production to us, Subaru Corporation has repeatedly demonstrated its confidence in and commitment to our associates. The transition to building the Crosstrek was our smoothest production transition yet—and we'll be ready for whatever comes next," he said.

Ending the Legacy manufacturing in Lafayette, Indiana, would presumably free up capacity for Subaru to produce at least one new EV in the U.S., helping it to potentially qualify for EV consumer tax credits.

I asked Craig if there are any expansion plans to produce a future EV model in Indiana. 

"We'll be ready for whatever comes next," Coven said. I'm not surprised at the answer, as Subaru is tight-lipped about future models. 

The Legacy Joins A Long List Of Discontinued Sedans

Automotive News says, "Subaru joins Ford, Volkswagen, Mazda, Buick, Mitsubishi, Chrysler, and Dodge in dropping midsize sedans, once one of the industry's biggest segments and long dominated by the Toyota Camry and Honda Accord." Speaking of Toyota, they just made a critical Camry decision.  

Subaru Is Betting Its Future On Being Smarter Than Toyota

Toyota has invested heavily in its hybrid models. It has 18 Hybrid models in its lineup, more than any automaker. Toyota recently announced that the new 2025 Camry sedan will be exclusively hybrid, and all other trim levels will be dropped. 

Subaru is also bringing new hybrids, but the Legacy sedan will not be one of them. Does Subaru think they are smarter than Toyota? From what I've seen, Subaru is going the safe route to bring only new models, such as Sport Utility Vehicles, which have been the top-selling models for Japanese automakers.

Subaru Caters To Their Active Customers

Subaru knows its customers well. They are active outdoor enthusiasts, dog lovers, and adventure-motivated. The Legacy sedan doesn't fit the mold of many Subaru customers who use their vehicle to escape the city to go camping, mountain biking, hiking, kayaking, and snowboarding on the weekends. 

Why Go To The Expense?

It would cost Subaru Corporation a lot to design an all-new next-generation Legacy Hybrid trim, and the model would likely sell poorly. So, Subaru is betting it is smarter than Toyota in that it knows what will sell in its lineup of all-wheel-drive models. I would give Subaru a thumbs up for dropping the Legacy from the lineup.

LET US KNOW WHAT YOU THINK

Are you sad to see the Legacy sedan disappear? Was it a mistake, and would you have purchased a Legacy Hybrid? Click the red Add New Comment link below to let us know.

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

Watch Why did Subaru just discontinue this model?

I am Denis Flierl, a top Torque News and Subaru reporter since 2012. I’ve invested over 13 years in the automotive industry in a consulting role, working with every major car brand. I am an experienced Rocky Mountain Automotive Press member. You'll find my expert Subaru analysis here. Follow me on my The Dirty Subaru website, Dirty Subaru blog, X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

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Photo credit: Subaru USA