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Good for Subaru! The company is acting responsibly, with due regard for the economic and human impacts of its decisions. That's something many U.S. businesses should emulate, especially big corporations.
New technologies will be developed over time. I suspect some form of piston engine will be among the viable alternatives.
Apparently, a motor that turns water into hydrogen for combustion has already been developed. And, it's proving the concept, at least up to a point. Simply working isn't enough for commercial viability. Durability, reliability and serviceability all must be proven as well. If all that works out, it's good news for Subaru, the auto industry overall and very large numbers of industry-supporting businesses and workers.