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Subaru Outback Is Leaving Its U.S.-Made Home, What’s Replacing It?

Why is Subaru Corporation moving the popular Outback midsize SUV manufacturing away from the U.S. and back to Japan? It only makes sense once you hear what's coming next. 

Why is the Outback leaving?

Why would Subaru Corporation consider moving the popular Outback midsize SUV production away from its U.S. plant to Japan? The Outback is a top-selling model for Subaru of America, and it would take longer to ship from Japan. It sounds like a bad idea, but given the current automotive landscape, it makes sense when you find out what will replace it on the U.S. assembly line. 

First, let's look at the Outback's success. 

Since its debut in 1995, the Outback has been a symbol of success, becoming one of the most popular models in America. The Outback has been proudly built at Subaru of Indiana Automotive (SIA) since its inception, a testament to our commitment to quality and innovation. 

Subaru of America (SOA) sold its three-millionth Subaru Outback midsize SUV/Crossover/Wagon in June. Why make a manufacturing shift now? 

Automotive News (by subscription) says, "Subaru is expected to consolidate production of its Outback midsize crossover in Japan in 2025 and produce a hybrid version in 2026, freeing up capacity to produce EVs in the U.S. to qualify for federal tax incentives." 

The Outback will also undergo significant changes in 2025 and 2026. The midsize 2-Row SUV will receive a complete redesign for the 2025 model year. We knew that. I reported last September that the Outback production would possibly move from Lafayette, Indiana, to Gunma, Japan. Read my report here.

Now it's looking more and more likely. 

The Outback will get "A full redesign of the midsize crossover is expected in 2025, when production is expected to move to Japan from Indiana, with a reengineering in 2026 to add an optional hybrid powertrain," says Automotive News.

That is a significant development for the popular Outback produced at Subaru of Indiana Automotive (SIA), where they recently produced its three millionth Outback model. 

The Outback, built in Japan after 2025, will get a new hybrid powertrain. Subaru Corporation will get the Outback hybrid technology from Toyota, and the new trim level will be introduced after the Forester Hybrid arrives next year.  

What will replace the Outback on SIA's assembly line?

Two models will replace the Outback. The next-generation Forester will begin production sometime next year after the Legacy sedan vacates the space. Subaru of Indiana Automotive needs the room on its assembly line to produce the U.S.-specification Forester and likely the all-new Forester Hybrid. 

A new Midsize electric wagon is coming in 2028.

The Automotive News report says, "Keeping to the brand's heritage, an Outback-size electric wagon will debut in 2028."

I have just heard about a new Subaru EV wagon. It will be the size of the Outback midsize SUV. Instead of building a battery-electric Outback, Subaru Corporation will produce an all-new all-electric wagon. 

The new Subaru Wagon EV will likely be developed in-house on the e-Subaru Global Platform, and Subaru has not yet confirmed it, but it could be manufactured in Lafayette, Indiana, alongside the new Forester for North American customers. 

I reported earlier that there were more changes for Subaru customers. Here is a recap of the new models for North American customers heading their way. Read my report here for more information.

Subaru will offer three new EVs in North America.

  • An Ascent-sized 3-Row EV built in Kentucky in collaboration with Toyota in late 2025. 
  • A Forester-sized compact SUV EV developed in-house on the e-Subaru platform is set to debut in 2027.
  • An Outback-sized electric wagon developed in-house on the e-Subaru platform will debut in 2028.

Subaru will offer North American customers three or four new hybrid models.

  • The all-new Forester hybrid is due next spring, 2025.
  • The Outback will offer an optional hybrid powertrain due in 2026. 
  • The Crosstrek and Outback will likely offer an optional hybrid powertrain due in 2026. 
  • A new Ascent hybrid could follow the Forester and Outback and remain for another generation with an optional hybrid powertrain.

It's the end of a successful era and the beginning of a new one. 

It's more likely that Outback production will leave its U.S. plant in Indiana and move to the Gunma, Japan manufacturing plant. New battery-electric vehicles will be produced in the U.S., and significant changes are coming. I will keep readers informed as announcements are made. Stay tuned. 

As Subaru embarks on this journey of change, we value your input. Would you consider purchasing a new Outback-sized electric wagon made in America? Your feedback is important to us. Click the red 'Add new comment' link below and let us know your thoughts.

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 SubaruReportAll Subaru, WRXSTI, @DenisFlierlFacebook, and Instagram.

Photo credit: Subaru USA

Comments

Calvin Cheeseman (not verified)    August 2, 2024 - 9:39AM

I have a 2024 Outback limited. I live in north eastern New York state, where we get a lot of snow and very cold weather. My opinion is that an EV is not something I’m going to purchase. I chose the Outback because of it’s size inside and out. I would consider a hybrid if it was the same size and price range, but the other models are too small.

Nelson Krssvhel (not verified)    August 2, 2024 - 10:24AM

Simply will not consider an EV vehicle.
Would consider a hybrid.
EV’s don’t have the infrastructure to be feasible at this time. Also cold weather is not kind to EV’s. At least that is the last info I have.
Please note we are looking seriously at the Ascent to replace our Chrysler Town and Country also considering the Honda Oddesey.

John Sherrill (not verified)    August 2, 2024 - 11:01AM

I will not be buying any EV vehicles. I would consider a hybrid but still tend to not buy one. I also only buy American built vehicles.
Thanks

Michael (not verified)    August 2, 2024 - 11:38AM

I don't love the idea that Subaru is moving the Outback from Indiana back to Japan, just to make EV vehicles. While I understand the need to introduce EVs into the US market, I would still much rather have a gas vehicle that can go a distance of 400+ miles at a time, fill it at a gas station in a matter of minutes and get back on the road for another 400+ miles. Now, if you have and EV you have to plan a trip to end up at charging station and wait 1 to 2 hours to get a full charge before you can get back on the road. I would much rather see R&D go into gas a gas powered vehicle and find a way to make the emissions come out as water vapor.

Pilar (not verified)    August 11, 2024 - 11:51AM

In reply to by Michael (not verified)

Fast DC car charging is now providing 200 miles of range in 10 minutes and continues to improve. While not yet as quick as gasoline filling, the cost is much lower, especially when charging at home with off peak rates overnight. It costs me $2 for 240 miles of range charging at home. Though that jumps to $20 when using public fast DC chargers. 90% of my charging is at home.

Ralph Mason (not verified)    August 2, 2024 - 12:13PM

I purchased an outback in 2018 a new 2017 model and have 100,000 miles of wonderful service. I will not purchase any electric vehicle mfd by anyone. I think the EV hoax has been a mistake and that much better, safer and cleaner vehicles are coming. Hydrogen or newer technologies yet to be finalized.
Everything EV is going to be kneejerk in my opinion and all wind turbines, solar panels that are being found out to be extremely polluting to our landfils and the horrendous mining is going to put a quick end to EVs
So I am trying to get a kneejerkless truly intelligent opinion as to what to buy next. Probably a gas powered outback from 2023 or 2024.

Lyle (not verified)    August 2, 2024 - 12:52PM

If range was greatly improved and if prices were lower. Other wise electric cars are too expensive for the main population.

Larry Scalzitti (not verified)    August 2, 2024 - 1:21PM

We have a 2016 Outback and part of our purchase decision was the Indiana manufacturing plant.
We plan on replacing our current Outback with a 2025 or 2026 Outback. If they move production back to Japan, we will NOT buy a new Outback. I want to buy a car that was made in the USA by American workers!

Judy quinn (not verified)    August 2, 2024 - 3:32PM

Don't like the idea... it is the best of what it does and basically the safest car... ask the insurance cos.
No thanks, not me... the only car I had had that could match the outback was the 2007 Toyota highlander hybrid. That car no longer exits and nothing as good.
Subaru Outback is in its own class and has its own following... recalls to come...

Bob B (not verified)    August 2, 2024 - 4:49PM

I have two Subaru cars, an Ascent, and an Outback. What the heck is Subaru thinking? I will never buy a electric Subaru, nor will anyone I know. I will not buy a car that is not made in America. It’s time we all start buying American built products, or we will have no industry left! As it stands now nobody is buying electric cars! Why would they when a battery costs half the price of the car. An electric car has no resale value, because everyone knows the problems trying to resell it with the concerns about “ how much battery life is left”.

Thomas Farrell (not verified)    August 2, 2024 - 5:41PM

The infrastructure to support EV’s is not built yet. Until it is, I would not buy one.

DL Pouch (not verified)    August 2, 2024 - 5:48PM

I would consider an Outback EV, depending on its specifications. In the meantime I'm looking forward to the Outback Hybrid

Tom (not verified)    August 2, 2024 - 8:24PM

I will not buy an all electric Outback of new Subaru EV wagon. I would buy another Outback but would be sad if it was not made in the US. I’ll also buy a Brat if they reintroduce it.

Richard Mariani (not verified)    August 2, 2024 - 8:49PM

No electric Subarus please. Not rugged. Not long lasting trips without a long time to recharge. Not environmentally friendly in obtaining raw materials or in disposing of the materials after the car life is over.

Randy Harrington (not verified)    August 3, 2024 - 1:37AM

Nope, not interested in a EV at all. Not practical for me. I can only imagine what the resale will be on EV's,. Who wants to buy a 3 or 4 year old car then stick $20.000 into a new battery in a couple years. The Cold Michigan winter will trash those batteries.

Dennis (not verified)    August 3, 2024 - 9:23AM

I am a Subaru owner of a Outback I was thinking about purchasing a new one not now I don't want electric or hybrid I will find something else

Zafar Iqbal (not verified)    August 3, 2024 - 10:20AM

Hello, I am a second owner of my Subaru Crosstrek limited 2021 (64,000 km). This is a great vehicle so far I drive till now. I would prefer a bit of extra power on my car that exactly I found in my current one. I would consider buying an EV car in future if that is affordable with attractive salient features.

Barry Lifrieri (not verified)    August 3, 2024 - 11:00AM

In reference to purchasing an electric Outback. We have had 5 Subarus, presently owning an Outback and Legacy. They have been some of the best automobiles ever owned, BUT we would NOT consider an electric version.

We are retired "snowbirds", and drive to Florida for the winter, carrying with us a fully filled Outback. It is not that I do not trust Subaru, I simply do not believe the "powers that be". By the time the infrastructure completed, easy and convenient, we will be too old to care. Our 1500 mile trip twice a year would presently be delayed many hours, locating a charging station, and waiting for a charge 6 times each way.

We are preparing to buy the new 2026 Outback, and look forward to the updates and improvements. Do you have any suggestions to help with the purchase?
Thank you.

Yours truly,
Barry Lifrieri

Larry Griffiths (not verified)    August 3, 2024 - 11:02AM

I would not consider buying or investing in a hybrid vehicle. I absolutely love my Subaru just the way it is!!!

Jane Cherny (not verified)    August 3, 2024 - 11:36AM

Battery electric is the way to go
Until much longer electric battery run time is developed. There are not enough charging stations available and charge time is too long for long distance travelers.

MPG is currently great enough for the hybrid.

Adrian Sedillo (not verified)    August 3, 2024 - 11:43AM

My dream has come true,considering buying an outback again .Now I definatly will,now and in 2026 with an outback EV.

Laura Benjamin (not verified)    August 3, 2024 - 11:53AM

I have had five Subarus since the late 1990s. The only one I had any concerns about was a Legacy wagon built in America, the brakes of which were reputed to be troublesome. I don't use brakes heavily and had a manual transmission so I didn't encounter issues. But I do have concerns in general about American workmanship from buying other brands and seeing how they deteriorate in general. I have never had a head gasket problem, worn struts at 20,000 miles, or sloppy doors from a vehicle made in Japan or Germany or even England. Convince me please that I can trust your American factory to make a Forester as good as one made in Gunma.