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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

Robert Allan (not verified)    August 3, 2024 - 2:34PM

We have a 2018 Outback and a 2022 Ford lightning.
We love both vehicles and plan on replacing the Outback with hopefully a Subaru hybrid soon.
And if Subaru comes out with a hybrid truck we will be happy to buy one also.
Subaru makes a great vehicle and we plan on staying with it as long as it continues to make a great vehicle.

Ray Gilroy (not verified)    August 3, 2024 - 3:05PM

I don’t think electric cars are the future. I look to compressed natural gas as an alternative. Also gas and electric hybrid may be more affordable. Two other alternatives might be nuclear and hydrogen power.

Ray Gilroy (not verified)    August 3, 2024 - 3:07PM

I don’t think electric cars are the future. I look to compressed natural gas as an alternative. Also gas and electric hybrid may be more affordable. Two other alternatives might be nuclear and hydrogen power.

Ur_name (not verified)    August 3, 2024 - 6:28PM

Is this sentence a typo?:
“ The Crosstrek Outback will likely offer an optional hybrid powertrain due in 2026. ”

Maybe supposed to be “The Crosstrek and Outback…”?

Thomas Hankins (not verified)    August 3, 2024 - 7:17PM

My 2022 Outback XT is a superb all around automobile that is equal or better than previous Mercedes and BMWs I have owned. I would love to trade up to an electric Outback!

Murray Morton (not verified)    August 3, 2024 - 8:06PM

As the owner, with my wife, of a2017 Outback and former owner of a 2015 model, I think highly of the brand. I would definitely consider purchasing another one so long as they reduce the plastic cladding introduced in the 2023 models. Didn’t anyone learn anything from the Pontiac Aztec?

D MacIver (not verified)    August 3, 2024 - 11:30PM

I will never buy a hybrid or all electric vehicle. If that is all Subaru offers, then they've lost me as a future customer. My brother, and also my brother-in-law who currently drive Outbacks have also stated they'd never buy an electric or hybrid.

I drive across country to Missouri from Connecticut often. I'm not going to stop every couple of hundred miles to charge overnight.

Robert Thiesing (not verified)    August 4, 2024 - 8:29AM

Hybrid Vehicles are the direction automobile companies should be heading.

All electric cars are good for local driving but not in cold climates as has been demonstrated in past winters in the northern parts of the US.
The government is wasting our money subsidizing electric charging stations

Andrew (not verified)    August 4, 2024 - 4:23PM

I love Subaru and have had my Outback for 8 years (210k+ miles), but in general, I am not high on electric vehicles. A hybrid is certainly a possibility though. As long as they keep all-wheel drive and high safety standards I will always love Subaru.

Steve Mikkelson (not verified)    August 4, 2024 - 9:47PM

Not a fan of the e cars. I often travel 350-500 miles a day for work and for skiing. I often drive from Wisconsin to Vermont or Colorado, and need a vehicle that can travel 800 + miles a day.

CARSRUS (not verified)    August 6, 2024 - 8:51AM

Just returned my 2021 Forester when lease ended, got a 2024 Outback ………lv it , have had 4 others , this is my 8 Subaru …..I will never buy or lease an all electric vehicle.

Mary McCall (not verified)    August 6, 2024 - 9:20AM

I have owned a 2010 Outback, a 2016 Crosstrek and a 2021 Forester. I am anxiously awaiting for a hybrid Forrester but more so, a Crosstrek. I am not interested in an EV. But I would like to see some of the amenities/options available on a Forester be made available on a Crosstrek

Dominick Albanese (not verified)    August 6, 2024 - 10:21AM

I am very happy with my gas powered Outback with the optional turbo charged. NO Electric for me! However, I have nothing against a gas- hybrid. Our infra- structure is not even closely prepared for all of these electric vehicles. Why not just concentrate on the bigger polluters like trucks, buses industrial equipment post office trucks, UPS etc.

Gene Luca (not verified)    August 7, 2024 - 4:31PM

Once the Outback is produced in Japan, Subaru Of America will undoubtedly raise the transportation cost to ship to the US, significantly and pass it on the buyer.

Bev (not verified)    August 7, 2024 - 10:15PM

I am waiting for a hybrid. Will purchase the Forester hybrid although I drive an Outback now. Then again, if an EV is coming out…nah, need to start the transition now. Will see how the driving range of an EV Subaru is first since I live in a rural western state. I need to be able to drive at lest 300 miles on a single charge.

Rebecca Welcom… (not verified)    August 8, 2024 - 2:52PM

My family owns my Subarus
We all agree electric is not the way to go due to environmental impact and cost. Hybrid are the way to go. My son is a Master Mechanic graduate of TSTC. WE are in Austin, but from northern Indiana. I have a 2020
Scent limited 16500 miles. It milage is bad, I am planning on trading it for a used Outback. I had a 2005 Outback I loved.

Warren Givens (not verified)    August 9, 2024 - 6:55PM

The rapid charging technology has not been developed and I am not willing to spend up to an hour of my trip waiting. Charging stations are few and far between.
I am disappointed in this decision—I have bought only Subaru cars since 1983 and hate to think that may have to change.

Judy quinn (not verified)    August 10, 2024 - 4:14PM

want outback remain u.s.
infrastructure not there and definitely not a green move.. I don't need to list why since there are many lists of why not green move. sounds more political just when I was trusting subaru.

Thomas myers (not verified)    August 12, 2024 - 6:52AM

I live in town house and the association will not let me put electrical for the ev so what am I to do. That is the question that know car manufacturers can’t give a answer.

Michael Kyle (not verified)    August 15, 2024 - 3:55PM

On my first Outback ('21 Limited) after many Honda's. It's been a good car -- smooth ride, safe, good gas mileage. Moving production to Japan not huge (nice though they were made in U.S.). An EV? Never! Range low (especially compared to a gas Outback) and charging too long. Hybrid maybe, but I'm happy with a gas engine. The company that continues to offer a gas engine in the future will get my business.