Add new comment

I covered the story you can read here, when Subaru Corporation announced that it, along with Toyota and Mazda, is each developing new engine technology. Subaru uses the flat-four Boxer engine in all its vehicles, so it was a significant story.

Subaru Corporation said," We have committed to developing new engines tailored to electrification and the pursuit of carbon neutrality." 

Okay, I like the sound of that. It would mean new fuel-efficient Boxer engines coupled with Hybrid technology, and customers want that. 

Here's what Atsushi Osaki, President and CEO of Subaru Corporation, says.

Atsushi Osaki said," Achieving a carbon-neutral society is a challenge that must be undertaken by all of Japan's industries and society as a whole. As we continue to refine electrification technology, we will also enhance our horizontally-opposed (Boxer) engines with an aim to use carbon-neutral fuels in the future. Moving forward, the three companies sharing the same aspiration will continue to advance the pursuit of sustainable excellence in Japanese car manufacturing."

Here Is Where The Water Gets Muddy

A recent report from Automotive News (by subscription) says, "Looking at the actual technology plans, only Toyota presented something entirely new." But not Subaru. 

Subaru Didn't Offer Anything New

In the announcement, Automotive News, which covered the event, said Subaru focused on its hybrid boxer engine project. Subaru already announced that it will enter production this fall (in the 2025 Forester Hybrid). You can read my report here.

The All-New Subaru Forester Hybrid, More Questions And New Answers @SubaruReport @torquenewsautohttps://t.co/fY2ZWFOxbv#subaru #forester #foresterhybrid #subaruforester pic.twitter.com/JD0HTkwJSj
— Denis Flierl (@DenisFlierl) May 1, 2024

"CEO Atsushi Osaki said Subaru remains committed to its horizontally opposed engine because it's a brand-building icon. But he offered little new insight into its future evolution.," says AN. Subaru also steered clear of talking about dates, especially long term. 

Toyota, Mazda, and Subaru made the joint announcement. AN says, "But despite that, the companies made clear this "Engine Reborn" initiative doesn't involve joint development, common procurement, shared production or technology tie-ups. That may come later, but there's no guarantee."

Did The Three Automakers Have a Hidden Agenda?

When you break down what the automakers really said, there's more going on here. And Subaru didn't say anything about it in their press release. 

The automakers' hidden agenda is to keep Japanese jobs intact as they make the transition to electrification. 

Automotive News says, "The Japan Automobile Manufacturers Association often talks about the importance of managing a sustainable shift to electrification so as not to endanger the livelihood of some 5.5 million people in Japan who depend on jobs tied to existing technology."

The automakers stressed the importance of keeping the companies currently supplying them with parts intact.

Many companies supply parts for Subaru, Toyota, and Mazda. These Japanese companies make all the piston rings, camshafts, spark plugs, crankshafts, ignition coils, turbochargers, and a multitude of other components that go into gasoline engines.

AN says, "Japanese carmakers need these suppliers to succeed, not only for their engine parts. The suppliers often make other parts that have nothing to do with the internal combustion engine. And in any case, they are all part of an overall industry ecosystem that needs to be vibrant to deliver innovation."

The announcement was cloaked to sound like it would benefit Subaru's customers in the U.S., where they sell 75% of all its global vehicles. And it could in the future. 

I wrote in a recent report that you shouldn't kiss the Subaru Boxer engine goodbye just yet.

With automakers backing off the recent massive push towards battery electric vehicles, Subaru is taking a different approach. They will be smart about the transition to EVs and, in the mid-term, develop new Boxer engine and hybrid technology. 

Subaru's EV Strategy Now is To Be A Quick Follower

Jeff Walters, President and COO of Subaru of America, says, "Solterra was the first EV, and it's been a good path for us. In my opinion, with the new EV transition, Subaru has been on a fairly smart path. With the strategy going in for a company our size, we strive to be a quick follower, a smart follower."

"We feel confident that there will be a transition to EVs, but with the transition timing being uncertain, for Subaru, part of the strategy is flexibility as we develop our plan."

Job Security

So, it's essential to understand that Subaru, Toyota, and Mazda's recent engine announcements are more about job security for its Japanese workers. This is what is the primary focus of the Japanese automakers. "Whole swaths of Japan's hinterlands rely on Mazda and Subaru as backbones of the economy," says AN.

Automotive News says, "Team Toyota's wager on next-gen engines seems like a safe bet for now. But suppose Japan Inc. falls too far behind global innovators in China and Silicon Valley. In that case, its treasured jobs may be jeopardized, despite the best intentions to save them."

Subaru Corporation walks a fine line because Japanese companies support and supply many of its parts for the Subaru Forester, Outback, Crosstrek, and other models. However, 85 percent of its global sales come from North America.  

Do you think Subaru and the other Japanese automakers were being deceptive?  Click the red Add New Comment link below and let us know.

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: Subaru