Subaru has a new strategy for its new all-electric vehicles. See why Subaru's new president and COO say it's on a new smart path, and they strive to be a quick follower.
What is Subaru's electric vehicle strategy? It's new and changing. With the EV landscape evolving so quickly, Subaru needs to be innovative. Subaru's new President and COO says they need to be smarter.
WardsAuto Podcast Host David Kiley talked with Subaru President and COO Jeff Walters about the brand's performance and future regarding new electric vehicles. It's a revealing conversation. I've brought you excerpts on Subaru of America's position on EVs.
Wards Auto says, "Subaru is a unique car company. Some may even call it a unicorn."
I would have to agree. Some would go further and call Subaru quirky. Subaru is different. Check out my report here on why the Japanese automaker marches to a different drummer.
A Hard Act To Follow
Jeff Walters is a 32 veteran of Subaru of America, marking his first year as the new President and COO of Subaru of America who took over from Tom Doll last year. It's not easy following a legend in the Subaru's history. Read my story about Tom Doll's recent award and how he left a "legacy of disruption."
Even though the company is based in Japan, it may surprise some to know that approximately 85 percent of Subaru's global business is in North America, most of that in the US. Subaru of America is headquartered in Camden, N.J., and Subaru of Indiana Automotive (SIA) is the U.S. plant in Lafayette, Indiana.
SIA is where they build the Outback, Crosstrek, Ascent, and Legacy models. The automaker will build the next-generation Forester and Forester Hybrid models in 2026. My recent report has more information.
WardsAuto Podcast Host David Kiley talks with Subaru President and COO Jeff Walters on his one-year anniversary at Subaru of America. He's been on a fun ride so far.
For the past 11 years, as automakers of every stripe have poured SUVs and CUVs (crossover vehicles) into the U.S., the Forester compact SUV/CUV has been the top-rated vehicle in its class in Consumer Reports' annual rankings. It's not a surprise because Subaru invented the segment.
Subaru Appears To Be Behind
However, the Forester is gas-powered, and the next-generation Forester Hybrid is still a year away from being launched in the U.S. So Subaru appears to be behind.
What Is Subaru's EV Strategy Now?
Jeff Walters says, "Solterra was the first EV, and it's been a good path for us. In my opinion, with the new EV transition, Subaru has been on a fairly smart path, and the strategy going in for a company our size, we strive to be a quick follower, a smart follower."
"We are feeling confident that there will be a transition to EVs, but with the timing of the transition being uncertain, for Subaru, part of the strategy is flexibility as we develop our plan."
"The stages we're going in with Solterra, and then additional joint venture EVs (with Toyota), which will eventually be followed later by our own exclusively designed, developed, engineered produced EVs after that, a pretty smart decision. While we approach it, we can maintain that flexibility."
When Will Subaru Begin Designing, Developing, Engineering, And Producing Its Own EVs?
Four new Subaru EVs are coming in 2028. Still, before that, Subaru and Toyota will produce a joint venture EV that Subaru will manufacture in its own plant in Japan, which is currently being constructed, starting in 2025. "This will be a learning as well, not just the technology but the production process," says Walters.
A new state-of-the-art EV assembly facility is being built in Japan and will be ready for production by 2028. You can read my report here.
How dependent is your Electrification strategy on Toyota?
"I wouldn't say dependent; it's a good partnership. We get a lot of the electrification technology through Toyota, and that's good learning for us. On the other hand, the powertrain and all-wheel-drive technology in these vehicles are primarily put in by Subaru engineers. So, there's mutual benefits both ways."
"Our partnership with Toyota goes back to the Camry, which we built at our factory at SIA. Then we co-developed the BRZ/GR86 sports car and now the Solterra EV. Our engineers worked side by side developing the Solterra. So we've gone through this process with them already. It's been a long-term connection."
Are you behind in the transition to EVs, and what do your customers want from Subaru?
"I don't think we are behind. Our customers are concerned with the environment, so as the transition to EVs progresses, this should fit our brand well. When we survey our customers and ask them about their future car purchases, they are interested (in EVs)."
"But there's more to it; it's not that simple as asking them, are you interested? Other factors come into play. Can we provide them with the car at the appropriate price point? Is there adequate charging infrastructure and network to support them so they can use that car how they would like to use it?"
"When are those charging stations going to be up in the Poconos? So they can use it the way a Subaru owner wants to use it?"
I was impressed by Jeff Walters's comments about Subaru's new EV strategy. While many automakers rushed head-first into offering an all-EV lineup, Subaru took a steady-going approach. Now, as EV sales are cooling off, it's looking like a smart move for Subaru.
I take Jeff Walter's description of themselves as a "quick follower, a smart follower" to mean they will watch the trends closely and be ready to move ahead quickly when the time is right.
I've criticized Subaru Corporation for holding too tight to Toyota's apron strings. I've also said they need to let go and design, build, and manufacture their own unique EVs. They will eventually get there, but the next three new EVs will be collaborative efforts between the two Japanese companies.
In light of the new EV developments, I would say they are smart because small automakers don't have the luxury of making many mistakes; they have to be smarter than everyone else.
Now It's Your Turn
What do you think of Subaru's quick-follower and smart-follower strategy? Click the red Add New Comment link below and join the discussion.
I am Denis Flierl, a top Torque News 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 X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Competition Subaru
Long article, but how about…
Long article, but how about telling us about the actual RV directions and invitations in store from Subaru?
I don’t necessarily agree…
I don’t necessarily agree that Subaru has held on too tight to Toyota’s aprons strings. Owning a RAV4 Hybrid, in addition to Gen 5 Outback, I feel that are making good utilization of the relationship, especially in the ares of EVs. Toyota is conservatively cautious going down that path and has played a very successful hand in the hybrid game, to the benefit of both Company and consumers. If the hybrid tech being used in Forester, and hopefully soon, the Outback, is based on Toyota’s, that is a win for those of us waiting for it in Subaru.
After reading this paragraph…
After reading this paragraph "Four new Subaru EVs are coming in 2028. Still, before that, Subaru and Toyota will produce a joint venture EV that Subaru will manufacture in its own plant in Japan, which is currently being constructed, starting in 2025. "This will be a learning as well, not just the technology but the production process,"
I'll wait till 2028 to buy another Subaru.
I’ve been a loyal Subaru…
I’ve been a loyal Subaru owner for over 10 yrs with 3 leased crosstreks and an owned Forrester. When it came time for renewing my lease, I put a deposit on one of the 1st Solterras. But after looking at the range and the charging speed and with some of the initial delivery delays, withdrew my application and now own an Ioniq 5. I love my Ioniq, but it’s not a Subaru. Subaru needs their own EV platform with a longer range and a much faster charging speed than what’s available with the Solterra.
Hyundai Ioniq 5…
Hyundai Ioniq 5 unfortunately was too low to the ground and definitely didn't have the same winter traction as my 2023 Subaru Solterra (had a 2021 Subaru Crosstrek, before the Solterra), has all the benefits of the Crosstrek with a Cheaper efficiency of the Solterra EV. I must admit at between -51°C to -45°C, I was worried about range, but it didn't let me down; used a lot more power (<11%> = 19% per 47KM), versus summer at 8% per 47KM, the new 2028 Toyota batteries will charge faster and the range on this year beta testing is sitting at 2100km per charge opposed to my current 400km for my current battery assembly. Toyota EV technology and Subaru All-Wheel Traction, is a winning combination, and the new batteries in 2028 will be second to none; they even used the 2023 Solterra platform to test this higher density battery assembly; it's just unfortunate we have to wait for them to scale up the production for the intricacies of this solid state assembly is quite involved. My wife's 2021 Hyundai Santa Fe Calligraphy has all the bells and whistles, Hyundai is an awesome Vehicle, if only we could combine the two; markedly, heads-up display , rotary dials and knobs Calligraphy) : versus : touchscreen and screen hidden behind the steering wheel (Solterra), however Subaru has better 360° illumination with superior backup cameras, and let's not forget the electronic engine braking to acceleration to just the almost nonexistent maintenance costs. Give it a moment, and that EV environmental system is actually faster than a conventional gas powered motor block heater assembly in winter, but alas is what draws that extra electricity; almost cannot wait four years to 2028, but the battery advancement is proven and worth the wait, and lastly $2.71 worth of power is cheaper than $25 worth of Gasoline for the same 47km distance, I imagine the Ioniq is better but it just cannot meet with the winter demands from heavy deep snow to the subsequent superior Traction my 2023 Subaru Solterra, has given me.
Same. If I could have…
Same. If I could have replaced my Crosstrek with a Crosstrek EV I would have. Not an option so I bought a KIA Niro instead. They are about 8 years into production on that model. It's a solid buy. KIA/Hyundai are well established in the EV market.
I hope Subaru progresses…
I hope Subaru progresses slowly on the EV front but what I think they really need is more Hybrid and PHEV offerings. This will be the sweet spot for their "unicorns"!
I think there are a lot of…
I think there are a lot of questions to be asked before one can conclude that Subaru is a smart and quick follower, and not just behind the curve. Questions a reporter could have asked could be:
1) How much money is Subaru paying to electrification leaders to buy pollution credits?
2) What, if anything, has Subaru done to ensure raw materials availability to be able to produce batteries at scale?
3) Is Subaru already working to develop battery expertise, or is the company intending to rely on 3rd party suppliers?
4) Other companies are finding the transition to electric vehicles an extremely expensive proposition. What is Subaru doing to ensure it has the financial capacity to make the transition?
5) Affordable EVs are requiring manufacturers to rethink many aspects of vehicle design. In what ways is Subaru already investing to ensure it's able to compete on price?
We bought first gen solterra…
We bought first gen solterra and although it has its quirks as all subarus have, it has never faltered to deliver on safety and stability in poor weather conditions.
Charging speed I have heard is the driving concern but for our use it is a perfect fit. Going forward I am certain newer models will improve on that, and who knows maybe an OTW update or other physical modification will improve that for our generation.
Will purchase another in the future i am sure.
Full transparency, we have bought only subaru since 2017 our favourite forester XT (which we still own).
2028 is too late to more…
2028 is too late to more seriously get in the game. Other brands will have long established models, with years of fine tuning, and proven track records by then.
I love my 2024 Solterra limited.. it is a pretty easy fix to make it a high demand suv... swap the front awd motor with the FWD motor and put a better charger so ot can fast charge faster. Its already more fun than my wrx to drive in town.
Looking forward to a non…
Looking forward to a non plug-in hybrid Outback. This seems the better strategy until charging stations are available everywhere. Adding another 10-15 mpg to their already decent mpg would be great!
This isnt just Subaru. This…
This isnt just Subaru. This is all Japanese auto manufacturers. Yes, they are smarter than all the rest. Always have been. You didnt think it was a coincidence that they make the longest lasting, most reliable vehicles, while still being more affordable than most by accident did you? For the foreseeable future, hybrids are the answer. Not EVs.
My 2023 Subaru Solterra, I…
My 2023 Subaru Solterra, I took down to -51°C and more than a week of -32°C to -47°C; that used a lot of power 21% per 47km (opposed to the 8%/47km, used in summer). There is ample charging, comes with a Level 1 plugs into a regular plugin, has an transformer built into this charging extension cord, and didn't trip the breaker, going further a field there is enough chargers to make that longer trip but for waiting for it to charge, the approximate grocery store or restaurant does the trick to get me home, but after test driving the hybrid vehicles at nearly $2 per litre of Gasoline and climbing , when you factor in a car payment, you are not saving much, but with my EV I am saving exactly $128 per month after car payment. At that $25 per day cost for Gasoline ever getting more expensive, at minimum $500 per month for Gas and over $100 budgeted for maintenance, the EV finds a value undeniable over a year of driving great distances under sometimes extreme conditions.
Great article. Thank you. I…
Great article. Thank you.
I have admired Subaru from a distance for many years but reluctant to buy a small production vehicle because replacement parts can be very expensive. My Simca experience was fun but pricey. We purchased two Tesla cars, an S and an X before Musk took his mental nose dive. I recently cancelled our Cybertruck order. I am excited about Subaru creating their own EV. They are someone I think I can trust in the long run.
To lead in the EV market and…
To lead in the EV market and maintain Subaru’s capabilities an innovative approach might be considered. Apart from improving the range and adding towing capacity, there are small things that need attending to.
As a Solterra owner, things like a gas strut for the hood instead of the existing prop. The display unit needs to be revised to put the touch controls closer to the driver, they are currently a long and distracting reach. To make space develop in-wheel motors such as may be found in the Rivian.
Subaru is smart adopting…
Subaru is smart adopting what they can of Toyota's hybrid/EV technology. Toyota is a world leader in hybrid tech. Most Americans don't want EVs due to EV range limitations. I buy my vehicles new and run them at least ten years if possible. With an EV that would require an expensive high-voltage battery change-out.
Subaru and the other…
Subaru and the other Japanese car makers may think they are winning by being a "quick follower, a smart follower", but I doubt it. Car tech is advancing so fast that having 'yesterday's tech' gets you no cred in the marketplace. Look at Korea...Kia and Hyundai are making a solid name for themselves, selling EVs like hotcakes, and providing an alternative to Tesla that is appealing to the masses. That is how you win in the EV marketplace...not waiting and copying IMO.
I love my Subaru Forrester…
I love my Subaru Forrester Sport, but I am not currently a fan of the EV's. I agree we have to be concern about our environment, but look at how they make the batteries for these cars. Also there is a lot of safety concerns in re: to these batteries. You can't park your car in a garage. So maybe we need to make more hybrids look more attractive to the consumer. Now, I
would just love for them to bring back the Baha.
I am sad that 2025 is the…
I am sad that 2025 is the last year for the Legacy. I wish they would build a new generation of hybrid Legacys. I think that Subaru following other manufacturers by dropping sedans is a big mistake. They trend of only offering SUVs because Americans supposedly prefer them is wrong from my perspective.
I think they are very smart…
I think they are very smart in their strategy. Too many manufacturers are jumping in without the infrastructure in place. I like many people are concerned about changing time, range, price, battery life and safety. Until these factors approach that of a gas powered vehicle, I will stick with gas.
I think they're doing the…
I think they're doing the right thing if they don't want to go broke. At least in America we still haven't figured out How to process and use our recyclables that we've been collecting for decades?. Jumping head first into something is never sensible. American automotives will be bailed out again by our tax dollars for jumping in to Fantasyland.
Subaru is very smart to take…
Subaru is very smart to take a cautious approach to EVs. We drove our fuel efficient Ascent from Houston to Vancouver last summer. We would have been stranded numerous times IF it had been an EV. Inadequate charging infrastructure exists in Wyoming, Montana and parts of Texas, New Mexico and Colorado. People who jumped into buying EVs were duped. They cost more, depreciate more and are less reliable. Subaru should give hybrids a hard look before going full EV. Loyal Subaru customers might go for that. But not a full on EV. Subaru owners don’t want to have range anxiety when they are out exploring. That would kill the brand. My 2 cents coming from a family who owns 8 Subarus.
I am a 2023 Subaru Solterra…
I am a 2023 Subaru Solterra owner. Previously, a 2021 Subaru Crosstrek owner. So, honestly going Electric Vehicle was a move in a positive direction, with clear markers on the the difference between what I consider the closest parallel equivalent from a gas powered motor to Electric Motors. Maintenance is cheaper, mileage only peaked a concern at -51°C to -36°C when the EV was consuming the most electricity but proved itself very worthy and instantly reliable. The denser 2028 Battery Toyota has created will allow for faster charge time and greater distance; 30 minutes to a full charge opposed to two hours for the batteries I currently use, for same on a Level 3 Charger. A Level 2 is an additional two hours from the same empty drained battery metric to a full charge. A epically huge selling point is the charging cord provided that draws less resistance than a Block Heater, and as a Level 1 charger it is equivalent to a trickle-charger at taking an entire 12 hours to charge 50% , but aside from it being easier on the battery, it get me to town. 47km from work, it was $25 for Gas roundtrip : $2.78 worth of electricity in the summer and $5.61 worth of electricity at its coldest. Paying for a HyperCharge at most cost me $11 dollars, at a gawd awfully long wait for it to cost that much, but learned when fully charged it is incentivized to unplug immediately or face an idle surcharge, or worse still it sets the charging pace. At work we have an Electric Delivery Truck, which requires the Level 3 Charger for the larger battery assembly but will charge my small battery assembly faster than any other charger, yet safely. Next milestone, is the big maintence service, but the money I have saved pays for itself, and at nearly $2 per Litre that alone I am saving money even with the car payment.
I would like to think they…
I would like to think they will also carry on making hybrids. At least give existing and future new hybrid models 5 generations of remodelling or upgrades.
Not just because I prefer hybrids but there needs to be a parts base to keep parts prices low.
As I’ve stated before…
As I’ve stated before between my late wife and I we have owned almost 10 Subarus. If not more I’ve lost count be honest. I presently owned at 2018 Crosstrek and it’s the first one that I’ve experienced mechanical issues. At 60,000 and 70,000 miles I have replaced both rear wheel bearings. My local mechanic independent but Subaru trained and went on their own has said that the installation was the problem. I live in Western, Massachusetts, and I agree that our roads are in need of tough repair, but this issue has disappointed me. At 74 I may or may not buy, another new car
I’m a Subaru owner since…
I’m a Subaru owner since 2003 and very pleased with the product. When I saw the lead up to this article I was anxious to read it. Wow, five minutes of verbiage with very, very little information. That article sounded like something from a High School writing class where students add words to get the required amount the teacher directed. Blah, blah, blah. Shame on the author!
But where are their hybrid…
But where are their hybrid models?? These are the best of both worlds. Energy efficient, and Toyota knows how to do this. Why not Subaru, if they're sharing technology from Toyota?
2028 is late for joining the EV game, as California is pretending eveyone will be buying EVs by 2030.