Subaru will only build one electric vehicle factory by the end of this decade as it seeks to increase its investment in electrification over the next five years.
According to Automotive News Europe, Subaru chief executive Tomomi Nakamura revealed during the automaker’s latest fiscal year earnings that the carmaker will begin building its own EVs as well as internal combustion vehicles at its Yazima plant in the mid-2020s. After 2027, it will replace its Oizumi plant with a dedicated EV plant that currently manufactures engines and transmissions.
Nakamura said Subaru is still deciding which EV models it will launch later this decade and in which segment they will compete. He said the EVs produced at the Subaru plant would be exported to world markets, including the United States. It is unknown at this time what he will do after leaving the post.
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The carmaker plans to invest 1.93 billion over the next five years to accelerate its electrification plan. According to Nakamura, the EV market is much different than it was a few years ago.
“Two or three years ago, U.S. retailers would not ask about EVs at all,” he said. “But this past year, it has grown abruptly.”
Subaru has confirmed that it will launch a number of next-generation hybrid models by the middle of the decade. These cars will use petrol-electric powertrains from Toyota and will be badged as ‘e-boxer’ models.
The company wants 40 percent of its global sales to come from hybrid and pure electric vehicles by 2030, and by the early 2030s, it wants to electrify all new vehicles sold worldwide.
Nakamura said in a statement that Subaru’s operating profit fell 12 percent to 90.5 billion yen ($ 742.4 million) in the fiscal year ended March 31. Subaru sales also fell 15 percent to 734,000 vehicles.