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Subaru Production Drops Across All Car Lines And What It Means For Customers Now

Subaru Corporation announced its overseas and U.S. production results. Learn why production dropped across all Subaru car lines and how it affects new car shoppers.

I report Subaru Corporation's overseas and U.S. production results every month, and this month's report shows a drop in all three important categories. This is important because it gives new Subaru shoppers an idea of what they can expect this spring and summer. 

From what I've seen recently, inventory levels of Forester, Crosstrek, and Outback are rising at Subaru of America retailers, so this drop in production may not drastically affect your new car purchase. First, I'll show Subaru's reported numbers and the affected U.S. models. Here are the specifics. 

Production Drops In Japanese Factory

Subaru Corporation reports a 22.2 percent drop in Japanese production in March. This is the second consecutive month of decrease at the Gunma, Japan, Subaru factory.

The Gunma plant is where Subaru manufactures the U.S. spec Forester compact SUV, Base and Premium Crosstrek subcompact SUV trims, Impreza compact hatch, WRX sports car, and BRZ sport coupe.

Production Drops In U.S. Factory 

Subaru Corporation reports a 4.5 percent drop in its U.S. Subaru of Indiana Automotive (SIA) factory production in March. Although U.S. production has been up, this was the first decrease in 14 months. 

Subaru manufactures the Outback midsize SUV, Crosstrek Sport, Limited, Wilderness trims, Ascent 3-Row SUV, and Legacy sedan at the SIA plant. 

Check out my recent story of why Subaru is dropping the Legacy sedan here

Exports From Japan Drop

Subaru Corporation reports a drop in the export total of the U.S.-spec Forester, Crosstrek, Impreza, WRX, and BRZ shipments to U.S. customers. This was the first decrease in three months, according to the Subaru report. 

From what I've seen, Subaru customers in North America should not be alarmed. As I said, Subaru of America's inventory levels have steadily risen over the past four months. 

I would say Subaru customers should find an ample number of models to choose from, especially the 2024 Forester, 2024 Crosstrek, and 2024 Outback. This is different from what customers experienced one year ago. 

Right Now, It's A Perfect Storm At Subaru

Let's review what I call the perfect storm. Three significant events that are affecting pricing and how Subaru retailers deal with customers. 

1. I see Subaru's inventory increasing, and the recent decrease in production should not affect things this summer, but I will keep customers informed. Stay tuned. 

2. Demand for new cars is down because of the economy and higher interest rates. This gives customers an edge, and it's a buyers' market now. 

3. I've seen Subaru retailers ready to make a deal. Subaru is now offering special financing on Forester, Outback, and Solterra. 

From what I've seen recently, Subaru wants to move the 2024 Forester and 2024 Outback to make room for the 2025 models that are soon to arrive. 

As I said in a previous report, SOA now offers special financing on both SUVs. I haven't seen this in the two decades I've been covering Subaru.

WAIT, WE WANT TO HEAR FROM YOU

Have you negotiated a good deal on a Subaru vehicle recently? If so, click the Add New Comment link below and let us know.

Thanks for reading, everyone. I hope you enjoyed this Subaru production story. See you tomorrow for my latest report.

Before you go, watch the There's A Perfect Storm Brewing At Subaru YouTube video and see why now could be the perfect time to buy a new Subaru Forester, Outback, or Crosstrek. 

I am Denis Flierl, a top Torque News and Subaru reporter since 2012. I’ve invested over 30 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 The Dirty Subaru website, Dirty Subaru blog, X SubaruReportAll Subaru, WRXSTI, @DenisFlierlFacebook, and Instagram.

I’ve got you covered! - I cover all Subaru all the time - It’s called the “Subaru Report.” Check back daily for my expert Subaru analysis!

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photo credit: Subaru of Indiana Automotive

Comments

bob E (not verified)    April 25, 2024 - 10:29PM

Why buy a new Solterra when you can pick up a used Solterra from Hertz used car sales for less than $30k, some with less than 10k miles?

Dan Martin (not verified)    April 26, 2024 - 11:09AM

I went to look at and test drive a new 2024 Subaru Forester last month. This was the time when the IIHS report was just coming out. I was concerned about the 'safety factor' so I didn't even stay at the dealership long enough to test drive the Forester. Now I have learned that the Forester has passed the IIHS test with the best test result over the competition.

I currently drive a 2021 Subaru Crosstrek Limited with only 18,000 miles on the odometer. My other vehicle is also an almost daily driver Honda CR-V EX with 207,000 miles. This vehicle has only had two repairs after being purchased new in 2009. A typical A/C compressor failure and the dreaded cooling tube that connects from the thermostat housing output to the firewall inlet. I performed this repair on my own with excellent results despite zero part availability at any Honda dealership. I had no other choice than to buy the Chinese made part from Amazon. I am not worried about the reliability of this vehicle because it has been meticulously maintained and is still in complete working order. However, I may regret having to replace this vehicle if it suddenly fails for any reason.

I understand that now is a historic time for Subaru and I have decided that I will never own another Honda. My experience with the 2019 Honda Civic Hatch Sport firmly cemented that decision for me. This was due to an unrepaired dealership engine misfire with only 23,000 miles and two years on the new vehicle. Lucky for me, Carvana upped their offer to $3,200.00 above my Vroom and Honda dealership offers! This offer was more than I had paid for the vehicle when I bought it.

My issue now is that I live in Michigan and I would like to take advantage of my Costco Auto Buying Program Affiliate Offer on a new 2024 Forester. I don't understand why there is no Costco Auto Buying Program Affiliate in this state.