Subaru sets the bar high.
Subaru has high expectations for the next-generation 2025 Forester compact SUV, but did they raise the bar too high?
A report from Automotive News (by subscription) says Subaru aims to sell 680,000 vehicles in the current calendar year in the U.S. and pins their hopes on the new Forester to get there. However, it would require a 7.6 percent increase over 2023. However, U.S. retail sales increased only 6 percent through June to 322,443 vehicles.
Forester has to perform well.
Subaru Corporation's CFO Katsuyuki Mizuma said, "This is a high hurdle. But we are going to boost our sales from August to October, a sales expansion period for us in the U.S. The new Forester will be the key to our sales recovery going forward. The full-scale sales of the new Forester will be a positive factor."
Mizuma said that Subaru needs to pick up the sales pace to meet its U.S. sales target. The Subaru CFO sounds confident the new Forester will launch off the pad and shoot into the stratosphere.
He said deliveries to Subaru of America's U.S. retailers will have to grow 9 percent in the second half. However, a full supply of the imported Forester compact SUV redesigned last year, is crucial to the plan.
Subaru is facing challenges that are beyond its control.
Earlier this year, I reported that Forester production was shut down due to an employee's death at the Japanese plant.
Subaru suspended operation at its main automobile plant (Yajima Plant) for eight days. The Yajima assembly plant manufactures the 2025 Forester, 2024 Crosstrek (Base and Premium U.S.-spec) SUVs, and 2024 Impreza compact hatchback for U.S. customers.
Subaru halted production to review safety protocols at domestic operations after a 35-year veteran was crushed to death by a 25-ton mold. That resulted in output remaining slower than usual through the end of April.
In Subaru's April-June fiscal first quarter, domestic output fell 11 percent.
As a result, global wholesale deliveries declined 10 percent to 212,000 vehicles. Wholesale volume in the U.S., the company's biggest and most important market, retreated 9.8 percent to 147,000 vehicles. About half of Subaru's U.S. vehicles are imported from Japan.
"The plant shutdown ate into global production and dented sales, despite robust demand for the brand's vehicles," Automotive New said.
The plant shutdown, which led to a decrease in production, had a direct impact on the volume of cars shipped to the U.S., as explained by CFO Katsuyuki Mizuma on August 5th during the financial results announcement.
"Since we had to slow down the pace of our production at our plant due to an accident and the subsequent measures between February and April, we shipped a lower volume of cars to the U.S. as a result," Mizuma said.
Forester sales declined in July.
I reported here that the Forester had a significant drop in sales in July, with 10,682 vehicles sold to U.S. customers compared with 14,504 in July 2023. Forester dropped 26.4 percent. The drop was partly due to Subaru Corporation's switch from the 2024 Forester to the all-new 2025 Forester compact SUV.
Subaru of America said, "Demand is increasing as Subaru builds inventory transitioning to the all-new 2025 Forester model."
Subaru not only raised the bar, they raised the pricing of all next-gen Forester trim levels, so we'll see if it affects sales.
What is the 2025 Forester pricing?
The 2025 Forester has five trim levels: Base ($31,090), Premium ($33,390), Sport ($35,890), Limited ($37,390), and Touring ($38,490). Pricing includes destination and dealer fees ($1,395).
The 2024 Forester Wilderness carries over with a starting price of $36,265 with destination and delivery fees ($1,345).
The new Forester has the potential to set more records.
Canada is a separate market from the U.S. sales, but the new Forester just had its best July ever north of the border.
"It's encouraging to see our new models remain popular with Canadians," said Subaru Canada Chairman, President, and CEO Tomohiro Kubota. "This new generation of Forester continues to offer superb safety, versatility, and capability in all conditions while improving the comfort and refinement."
Since its introduction for the 1998 model year, one in four Subaru's sold in Canada has been a Forester.
What are the experts saying?
Consumer Reports says..
"The redesigned 2025 Subaru Forester incorporates new and improved safety technology onto a stiffened chassis that the automaker says will give a quieter ride than its predecessors. Although the aesthetic presence of the new model skews more brawny—thanks to a beefier grille, more squinty headlamps, pronounced and plastic-clad fender arches, and distinct haunches—it's no surprise that cosmetic changes are relatively minor."
"The Forester has been a winner for Subaru, providing owners with standard all-wheel drive, big, high-visibility windows, and easy utility. Now, the automaker has enhanced its standard active safety features with pedestrian and cyclist detection and a rear-seat-occupant alert system. It also offers driver monitoring and emergency steering as optional equipment."
The fifth-generation 2024 Forester was a Consumer Reports Top 10 Pick. Check out my report here.
Can the all-new sixth-generation 2025 Forester live up to the outgoing fifth-generation 2024 model that is Subaru of America's top-seller this year?
Subaru has set the bar exceptionally high for the 2025 Forester compact SUV, raising the question of whether their expectations are within reach.
I will continue to bring you the latest information on the redesigned Forester. Stay tuned to see if Subaru's expectations for the Forester are too high or if the compact SUV will clear the bar.
Your opinion about the new redesigned Forester is important. Click the red Add New Comment link below and share 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 SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Adventure Subaru
Comments
Our 2025 Forester is our…
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Our 2025 Forester is our third Subaru following a 2016 Outback, and then a 2020 Outback. We wanted to downsize from the Outback. Our 2025 Forester Premier had the safety features we wanted. We enjoy the better visibility lines. More room in the garage. Better seating position and easier entry and exit into the vehicle. Well we do slightly miss the smoother ride and soundproofing of the Outback. The overall transition has been very positive. If the upcoming Forester hybrid gets good reviews and performance reports we may trade early than usual. Subaru’s all wheel symmetrical drive inspires our driving and instills road confidence in our driving. We love our Subaru.
Add Chrome around the…
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Add Chrome around the windows and I will purchase the new Forester.