Subaru Is Getting Serious About EVs In The U.S.

A blue 2023 Subaru Solterra
A blue 2023 Subaru Solterra

Good morning! It’s Wednesday, August 2, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.

1st Gear: Subaru’s Big EV Plans

Subaru is finally getting its act together when it comes to EVs, and on Wednesday said that it wants to be building EVs in the U.S. by 2027 and selling about 400,000 battery-powered cars here by 2028. That would account for about half of its current U.S. sales volume.

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The automaker’s CEO, Atsushi Osaki, also said that Subaru would be getting half of its global volume (about 600,000 units) from full-electric vehicles by 2030. Subaru will also be expanding its planned EV lineup from four models to eight. From Automotive News:

The company plans to start in-house EV production in Japan from 2025, on a line with capacity for about 200,000 vehicles a year. Subaru will add another line dedicated to EV production in Japan around 2027 with an additional capacity of 200,000 vehicles.

Meanwhile in the U.S., its biggest and most profitable market, Subaru plans to start localized EV production with an eye toward more aggressive EV sales there.

Osaki said U.S. production of EVs would begin in 2027 or 2028.

Subaru was still considering the production site, while taking into account battery procurement and EV supply chain logistics, he said. In the U.S., Subaru is considering its Indiana assembly site, but it is also looking at other options, including partnerships, Osaki said.

For batteries, Subaru will lean on Panasonic, at least in Japan at first.

Back in May, Subaru reportedly said it was rolling out four all-electric crossovers by the end of 2026, including the Solterra. Four more will join them by 2028, and one of those vehicles will reportedly be a three-row crossover built by Toyota in Kentucky.

2nd Gear: UAW Shares Their Demands

United Auto Workers President Shawn Fain took to Facebook Tuesday to spotlight the “audacious” demands of members ahead of the September 14 deadline to get a deal done. From The Detroit Free Press:

“Record profits mean record contracts,” Fain said during his broadcast. “While big execs have used those extreme profits to pump up their pay, our members have fallen further and further behind. ... The rich are getting richer while the rest of us are getting left behind.”

Gone are the days that contracts are won by the president behind closed doors, he said.

Fain sees merit in a 32-hour workweek, he said. COVID-19 has taught people to live life, not work 60 to 80 hours a week. “We shouldn’t have to spend seven days a week, 12 hours a day living in factories.”

Ford Motor Co., GM and Jeep-maker Stellantis can “easily” afford big changes in the upcoming contract that help workers, Fain said. Over the past decade, the Detroit Three have made a quarter-trillion dollars in North American profits. In just the first half of 2023, the three automakers made a combined bottom line profit of $21 billion, the UAW noted.

Fain listed these “audacious” goals:

The union’s demands were presented to Stellantis Tuesday, with General Motors and Ford to follow on Wednesday and Thursday, respectively. Throughout the broadcast, Fain consistently criticized “corporate greed” and big paydays for executives while saying workers have never worked harder for less.

3rd Gear: Ferrari Is Having A Great Time

Ferrari is reportedly raising its forecast for its full-year revenue and core earnings after better-than-expected results in the second quarter to go along with a “very strong” order book. The Italian automaker said it saw its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) growing this year between 2.13 and 2.18 billion euros. From Reuters:

The guidance upgrade was supported in particular by better than expected results in personalisations, Chief Executive Bendetto Vigna said in a statement, as well as by a strong product mix. Personalisations are the added touches that a customer requests to make the car more suited to their tastes.

The forecast for full-year EBITDA margin, however, remained unchanged at around 38%. The expected cash generation was also broadly unchanged, seen at around 900 million euros versus a previous guidance of up to 900 million euros.


In the second quarter Ferrari’s adjusted EBITDA was up 32% to 589 million euros ($646.4 million), broadly in line with analyst expectations of 580 million euros, according to a Reuters poll.

Shares of Ferrari are trading up around 40 percent this year. The outlet also reports that car shipments were slightly down last quarter in just about every region, and hybrid deliveries now account for 43 percent of total shipments. That’s over double what the number was last year.