The Subaru Corporation may shift the production of its 2025 Outback model from Indiana, U.S., to Gunma, Japan, according to a report.
The 2025 Subaru Outback production could move from Lafayette, Indiana, to Gunma, Japan.
The potential move aims to facilitate increased production of battery-electric vehicles in the U.S.
The shift in production might allow U.S.-made Subaru EVs to fully benefit from the U.S. EV tax credit.
The Subaru Outback, currently manufactured in Lafayette, Indiana, might see a change in its production location for its 2025 model. A recent report from Automotive News suggests that Subaru Corporation is contemplating relocating the manufacturing of this next-generation vehicle to its facility in Gunma, Japan.
2023 Subaru Outback | Photo: Matt St-Pierre
The rationale behind this potential decision is Subaru’s intent to realign its production capabilities in North America. By doing so, they aim to expand their range of products in the U.S., with a particular emphasis on battery-electric vehicles (BEVs). This move comes as the automotive industry sees a growing demand for eco-friendly vehicles, and Subaru looks to cater to this ever-growing market.
2023 Subaru Outback | Photo: Matt St-Pierre
AutoForecast Solutions, a firm specializing in tracking automaker production strategies, anticipates that Subaru will centralize its Outback SUV production in Japan by 2025. The Outback remains a favored model in the U.S., making this potential decision quite significant. By moving Outback production to Japan, Subaru would be able to optimize its Indiana facility’s production capabilities. This would mean expanding production lines for models like the Forester and Crosstrek crossovers and also making room for upcoming electric vehicle projects.
Furthermore, in a recent private gathering, Subaru of America showcased the revamped 2025 Outback to its U.S. dealers, hinting at major upgrades for the model.
2023 Subaru Outback | Photo: Matt St-Pierre
However, it’s crucial to note that Subaru has not officially confirmed these relocation plans for the 2025 Outback. If the move does happen, it could be strategic, allowing Subaru’s U.S.-produced EVs to be eligible for the full U.S. EV tax credit. It’s clear that Subaru is on the brink of significant changes, and the automotive world will be watching closely.
