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In a surprise announcement at Subaru Corporation’s fiscal year-end 2024 meeting, Subaru President and CEO Atsushi Osaki said they will begin building the next-generation Forester and a new Hybrid version compact SUV at its Subaru of Indiana Automotive (SIA) plant in Lafayette, Indiana. 

UPDATED: Here is a statement from Scott Brand, President and Chief Operating Officer Subaru of Indiana Automotive.

"We’re excited about Subaru Corporation’s decision to build the Forester at our facility. Once again, they’ve demonstrated their confidence in our associates to build the company’s most popular models. We take pride in these opportunities to remain a key contributor to the brand’s continued success."

“While we have steered toward EVs, we find it important to sell internal combustion products at the same time,” Osaki said. “So, we already have plans to expand our hybrid product lineup.”

A report from Automotive News says Subaru will build the 2.5-liter gasoline Forester in Indiana as well as a new Forester Hybrid. Because Forester sales have shot through the roof recently, Subaru announced in April that it would drop the Legacy sedan production in Indiana. This will now make room for the popular Forester compact SUV. Now, SIA will build Forester for North American customers. 

“To better supply the popular Forester – the brand’s best-selling nameplate in the U.S. – Subaru will also add production of both the hybrid Forester and the traditional gasoline version to the company’s Indiana factory,” the report said.

Subaru will continue to manufacture the Forester in Gunma, Japan, which will supply its local Japanese customers as well as those in Australia, Asia, and Europe.

What Does It Mean For Customers?

More than half the vehicles Subaru sells in the U.S. are imported, including the top-selling Forester. Now, customers in North America will be able to get the Forester more easily since it doesn’t have to be shipped from Japan.

When Will Customers See The Forester Hybrid? 

The report says, “Localized U.S. production of the next-generation (Forester) hybrid system will start around 2026.”

Subaru will tap into Toyota’s hybrid technology to produce the next-generation Forester Hybrid. New Subaru EVs are coming, but until then, Subaru has been seeing the hot hybrid trend in the U.S. market, which they will take advantage of. 

“At the same time, it is important to continue to develop and sell internal-combustion vehicles and to have hybrid products ready as well.”

Subaru did not say when the new Forester with the 2.5-liter Boxer engine would begin production in the U.S. plant. Stay tuned. Subaru customers should see the U.S.-built Forester Hybrid in 2026. 

What About You?

Are you waiting to purchase a new Forester Hybrid? What do you think of the Forester being produced in the U.S.? Click the red Add New Comment link below and let us know.

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

I am Denis Flierl, a top Torque News and Subaru 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: Subaru USA