Another Automaker Is Delaying Its EVs
Subaru is developing its own electric vehicles separate from Toyota and it has delaying their launch.
The Breakdown:
- Subaru has delayed the launch of its in-house developed battery-electric vehicles.
- The CEO cited the slower-than-expected adoption of EVs in the United States.
- The automaker said it will ‘significantly reduce’ investments in EVs.
Subaru has no shortage of electric vehicles, with three models currently in its lineup. The automaker built its portfolio by collaborating with Toyota while developing its own in-house battery-electric vehicles (BEVs), but now Subaru is delaying that.
The automaker never said when it would launch its proprietary EV, but whenever it was, Subaru scrapped it. According to Automotive News, company’s CEO, Atsushi Osaki, said that the slower-than-expected adoption of EVs in the United States, a key market for the brand, is forcing the company to reevaluate things. Osaki said:
“Given this, the timing of our BEV market introduction will be pushed back. We want to begin a comprehensive re-evaluation of the entire strategy, including which models to bring to market.”
Subaru said it will continue to develop “core” BEV components, but like other automakers, it will “significantly reduce the resources allocated to this effort.” The write-downs from Subaru’s EV shift will cost the company ¥57.8 billion ($363.9 million at today’s exchange rate).
The three EVs Subaru currently sells are the Uncharted, the Solterra, and the Trailseeker, and it is to be determined when Subaru’s next EV will join. Osaki said the automaker will “finalize the exact launch timing of our in-house BEV models after carefully monitoring market conditions. It is still too early to say a specific timeline at this point.”
Motor1’s Take: Subaru is not the first automaker this year to reevaluate its EV efforts. The loss of the federal tax incentive in the United States has torpedoed sales, and now automakers must shift their production plans as consumers continue to prefer combustion-powered vehicles.
The Current State Of EVs:
Source: Automotive News
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