Subaru Delays In-House EV Launch Amid 90% Profit Drop
SkimNews Take
Subaru's retreat from in-house EVs highlights how the profitability of established combustion engine lines can buffer or hinder a company's transition to new technologies, depending on market shifts.
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- Subaru postponed its target year for launching in‑house EVs from 2028 to an undefined future date, and its new Oizumi Plant will initially produce gasoline and hybrid models.
- Subaru reported a 90% drop in operating profit to ¥40.1 billion and a net loss of ¥51.36 billion, with ¥229 billion in tariffs and a ¥385 million EV write‑down contributing to the loss.
- Subaru redirected its planned ¥1.5 trillion ($9.7 billion) EV investment toward hybrid and ICE development, effectively shelving the in‑house EV program.
- Atsushi Osaki said the company will fully reevaluate its EV strategy before setting new launch dates, citing U.S. market conditions as a key factor.
- Mazda delayed its first in‑house EV from 2027 to 2029 and cut its EV investment by roughly half, from $12.5 billion to $7.5 billion, mirroring a broader Japanese retreat.
Why it matters: Subaru’s profit collapse and EV postponement hurt shareholders and suppliers, while competitors like Toyota gain market share as Japanese automakers retreat to hybrids, reshaping the U.S. EV market dynamics.
