Subaru’s Bold Moves Are Paying Big Dividends

Subaru made a bold move. 

It was a bold move when Subaru of America announced there would be a shift and bring the top-selling Crosstrek subcompact SUV manufacturing to the U.S. plant from Japan. They made room for the newly-redesigned 2024 Crosstrek on the Lafayette, Indiana, assembly line by shifting the slow-selling Impreza manufacturing to Gunma, Japan. Read my report here.

It's paying off.

Subaru's bold move is not just a leap of faith but a calculated step that is now paying off.

It was smart because they didn't need to spend millions expanding the Subaru of Indiana Automotive plant. The Crosstrek rides on the Impreza platform, which was a relatively easy transition for the Japanese automaker.

Subaru Japan kept producing the slower-selling Crosstrek Base and Premium trim levels and shifted the hot Crosstrek Sport, Limited, and all-new Wilderness trims with the 2.5-liter Boxer engine to the U.S. manufacturing facility. 

Quicker delivery times.

Customers can get their new 2024 Crosstrek sooner with fewer shipping delays from Japan to the U.S. and Canadian Subaru retailers. The shift is paying big dividends because the Crosstrek had the best-ever June in the U.S. and Canada. Read my report here.

Let the numbers tell the story. 

Subaru Corporation announced its production numbers for June and for the first six months of 2024. They tell a significant story. 

Subaru Corporation announced that Japanese production at its Gunma plant decreased by 5.0 percent in June. That's the 5th consecutive month of decrease. The Japanese plant is down 8.4 percent through the year's first six months. 

In contrast, the new model production of the 2025 Outback, Crosstrek Sport, Wilderness, and Limited, as well as Ascent and Legacy, increased by 17.6 percent in June. It's Subaru of Indiana Automotive's (SIA) third consecutive month of increase. SIA has increased its production by 17.4 percent this year. 

More manufacturing shifts are coming.

Subaru Corporation must like what they see because they are moving the next-generation 2025 Forester production to the U.S. plant starting next year. Up until now, Forester has been built in Gunma, Japan.  

Subaru Corporation's decision to move the next-generation 2025 Forester production to the U.S. plant starting next year is a clear sign of its future manufacturing plans. This bold move, coupled with other upcoming shifts, promises a significant shakeup and exciting developments ahead.

Despite the ramping up of new Forester production and shipments to U.S. shores, Subaru Corporation's export total in June was down 24.1 percent. This decline is a clear indicator of the automaker's increasing efficiency in its manufacturing process, instilling confidence in its operations. 

They are doing more with less. 

Subaru's ability to do more with less is a testament to its efficient manufacturing process.

They can now make more of its fastest-selling models, like the Outback and Crosstrek in the U.S., and manufacture more top-selling Foresters in Japan. Even that is going to shift. 

Subaru makes another bold move.

Subaru decided to drop the Legacy midsize sedan altogether, and that's how they will make room for the new Forester production in the U.S. starting next year. 

There are still more bold moves and a significant shakeup ahead.

I reported last September that the Outback midsize SUV production will move from Lafayette, Indiana, to Gunma, Japan, "with a reengineering in 2026 to add an optional hybrid powertrain," says Automotive News.

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

The Outback move out of the U.S. will make room for a new Outback-sized EV wagon to be built in the U.S. plant. This should happen in 2025. The shift will allow Subaru to free up capacity to produce EVs in the U.S. to qualify for federal tax incentives.   

To learn more about Subaru's new manufacturing and EV production plans, read my latest report here for complete details. 

Subaru's recent announcement of its production numbers for the first half of the year is a testament to the success of its bold manufacturing shifts. These strategic moves are not only paying off but also paving the way for more positive changes in the future.

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: Tucson Subaru