Subaru’s Dismal Financial Report And What It Means For New Car Shoppers

Subaru Corporation just released a new financial report, and the outlook is dismal to start the new year. The Japanese automaker says its profits dropped by two-thirds in the latest quarter as the production of its new 2022 Forester, Outback, Crosstrek, and other new models fell and affected sales results.

Subaru’s ongoing supply chain issues are affecting new model sales as backorders for its top models; Forester, Outback, Crosstrek are delayed. A report from Automotive News says, Subaru was forced to cut its earnings outlook “with no clear signs of relief from the ongoing semiconductor crisis.”

photo credit: Boise Subaru

Subaru Corporation’s operating profit dropped 66 percent to 22.7 billion yen ($197.2 million) in the fiscal third quarter ended December 31, the Japanese automaker reported this week.

Subaru said it was hit by rising raw material costs in addition to slumping new car sales due to the ongoing global microchip shortage. Subaru's global output fell 20 percent to 207,000 units in the October-December period, an 11 percent production slide in the first three quarters.

photo credit: Boise Subaru

What does it mean for Subaru customers?

What is Subaru's new model inventory forecast for 2022? The inventory crunch is expected to ease in the second half of 2022 for Subaru and other automakers, but "It's going to take a long time to fill the pipeline," says Cox Automotive executive analyst Michelle Krebs.

An Automotive News report says, "Subaru continued to have the tightest supply among reporting automakers," and they have the fewest new Forester, Outback, and Crosstrek on their lots and showrooms.

Subaru restarted production at its two manufacturing plants in Japan on February 9, 2022, after a six-day shutdown. Subaru Corporation did not report how many vehicles were affected by the plant closures.

What should Subaru Forester, Outback, and Crosstrek shoppers do now? Savvy car shoppers who can wait are ordering the 2022 Subaru Forester, Outback, Crosstrek, and other models in the color and trim level they want from their Subaru retailer. How long is the wait? It's taking about four months if a customer orders a new model today.

What’s next for Subaru in 2022?

The 2023 Subaru Solterra is the automaker's first-ever all-electric global vehicle, and it goes on sale in mid-2022 for U.S. customers. The compact SUV will be available in all 50 states and will be priced around $40,000 for the base trim and could approach $50,000 for the fully-loaded Touring trim level. Check out the complete model guide here.

You Might Also Like: Subaru's Super-Tight Inventory And The New 2022 Model Outlook

Also Check Out: The New Subaru Solterra EV Customer Reservation System is Open Now

Denis Flierl has invested over 30 years in the automotive industry in a consulting role working with every major car brand. He is an accredited member of the Rocky Mountain Automotive Press. Check out Subaru Report where he covers all of the Japanese automaker's models. More stories can be found on the Torque News Subaru page. Follow Denis on Facebook, Twitter, and Instagram.

Subaru Report - We’ve got you covered! Check back tomorrow for more unique, informative SUBARU news, reviews, and previews you can trust.

Leave your comments below, share the article with friends and tweet it out to your followers!

Photo credit: main image Boise Subaru