Subaru Dials Back Production Again And What It Means For Customers

Subaru has too many new models on its dealer's lots.

Subaru of America is currently in a unique situation. The Camden, N.J. automaker has more new models sitting on retailers' lots than it has in years and has reduced new model production. This has resulted in a surplus of inventory, a rare occurrence in Subaru's recent history.

Last month, I said in my report here that Subaru Corporation made a strategic decision to increase production in Japan and cut back on its new model production in the U.S. factory. This was a proactive measure to align production with market demand, and now, both domestic and overseas production has decreased. 

However, it's excellent news for customers shopping for a new 2025 Subaru Forester, 2025 Outback, or 2024 Crosstrek. These models have been in tight supply recently, but that has changed this fall. Here are the details.

Subaru Corporation released its production and export results for August. 

The announcement reveals that Japan's Gunma plant production has decreased by 0.0 percent. That's significant because it's the first decrease in 2 months. The Japanese plant production is down 6.2 percent for the year. 

Subaru Japan manufactures the new 2025 Forester, 2024 Crosstrek Base and Premium subcompact SUV trim levels, the 2024 Impreza compact hatchback, the WRX performance sports car, and the BRZ sports coupe. 

U.S. production slows. 

In the U.S. plant, the production of the 2025 Outback midsize SUV, Crosstrek Sport, Wilderness, and Limited subcompact SUV trim levels, and Ascent 3-Row SUV and Legacy midsize sedan decreased 8.2 percent in August. It's Subaru of Indiana Automotive's (SIA) second consecutive monthly decrease. Despite the slowdown, SIA has increased its production by 9.6 percent this year. 

With the decrease in Subaru's Japanese plant production, the export of the new 2025 Forester and other models decreased by 21.7 percent, the first decrease in two months.

This fall, more new next-generation 2025 Forester are on U.S. retailer's lots for customers. 

I wrote recently that this recent shift in the market dynamics is crucial for potential buyers to understand. It's a time of opportunity for buyers, and things have changed for Subaru of America. Here are the latest developments at retailers.

It's now a buyer's market, and you have the upper hand if you are buying a new Subaru Forester, Outback, or Crosstrek. Subaru retailers are offering more manufacturer and dealer incentives to sell vehicles. 

Subaru retailers are offering significant savings, making it a financially savvy time to buy a new Subaru. The most significant savings are on the Subaru Solterra midsize SUV EV (13%), Subaru Ascent 3-Row SUV (6%), and Outback midsize 2-Row SUV (7%) with savings of $6,174, $2,854, and $2,634 respectively less than MSRP. Read my report here for more details. 

Consumer Reports says, "Of course, you may be able to negotiate an even lower price, but bear in mind that there's a limit to how low prices can go, especially as demand sometimes outstrips supply these days. And as we've found in buying cars for testing, a decent deal can vanish quickly, so you may need to act fast."

How is Subaru of America's sales?

Last month, I said in my monthly report that Subaru of America reported 63,053 vehicle sales for August 2024, an increase of 11.8 percent compared with August 2023 (56,407). SOA also reported year-to-date sales of 437,198, a 6.4 percent increase compared to 2023.

Subaru has the hottest model in America.

In my recent report, I covered a new report from Cloud Theory that revealed the 2024 Subaru Crosstrek had the most significant increase of vehicles sold to customers in the past 90 days in the U.S. of any model. They identified ten cars, SUVs, and trucks with the most considerable growth, and Crosstrek was number one. Read my complete details here. 

Subaru of America will announce its September sales performance numbers next week, and I'll bring you the details. Will Subaru experience its first downturn in sales in 25 months? Stay tuned.  

It's Your Turn

We want to hear from you. Are you shopping for a new Subaru this fall? Did you know it's a buyer's market now? Click the red 'Add New Comment' link below and share your thoughts.

I am Denis Flierl, a Senior Torque News Writer 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: Subaru North Orlando