Subaru's Future Depends on a Single Model Due to Tariff Challenges | Carscoops

      In April, Subaru garnered nearly 12,000 orders for the new Forester in Japan, which is more than double the previous record for orders in a single month.

      Last year, the United States accounted for 71% of all new Subaru model sales, making it the brand's largest market.

      This fall, Subaru plans to start manufacturing the Forester at its production facility in Indiana.

      The company has not yet committed to boosting production in the U.S., citing the requirement for supplier cooperation.

      All Japanese automotive brands bringing vehicles into the United States are experiencing the impact of President Trump's tariffs, but Subaru is the most affected among them. To mitigate the effects of these tariffs, the new Forester must achieve significant popularity.

      Up until May, Subaru successfully sold 84,629 Foresters in America, reflecting a modest 3.9% increase compared to the same period in 2024. This places the Forester at the forefront of Subaru's sales in the U.S., making it the brand’s best-selling vehicle in the country.

      In the fiscal year ending March 2025, Subaru sold 936,000 vehicles globally, with 662,000 (or 71%) sold in the United States. This highlights the critical importance of the U.S. market for the Japanese automaker.

      However, Subaru is facing a significant challenge. Approximately 50% of the vehicles it sells in the U.S. are imported from Japan. Due to the substantial 25% auto tariff enacted during Trump’s presidency, Subaru’s operating profit is projected to decrease by $2.5 billion, nearly erasing the $2.79 billion profit achieved last fiscal year. In essence, the future of Subaru relies heavily on the success of the Forester.

      Subaru’s Savior

      Sales for the new model, which has faced some criticism for its somewhat generic design, began last year, and a hybrid variant has recently been introduced. It is currently manufactured in Japan, but Subaru plans to begin its production at the Indiana facility this fall, according to Nikkei Asia.

      During Subaru’s recent annual shareholder meeting, president Atsushi Osaki noted that the plant's capacity could be expanded to over 400,000 vehicles. He also stated that in April alone, the company received nearly 12,000 orders for the new Forester in Japan, more than double the previous monthly record. For perspective, Subaru sold just 19,330 Foresters in the U.S. that same month.

      Despite these promising numbers, Subaru has not yet committed to increasing production in the United States. A significant factor influencing this decision is the supply chain in Japan, and the cooperation of these suppliers would be necessary for a greater emphasis on U.S. manufacturing.

      “It’s true that increasing our production in the U.S. would enhance our ability to manage the tariffs, but it would be challenging without the support of all our suppliers,” he stated. “We need to consider this comprehensively.”