Subaru Changes Its EV Strategy, Are They Smarter Than Everyone Else?

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