Subaru Plots More Hybrids, Electric Car in Future

Luke Vandezande
by Luke Vandezande

Subaru’s future plans include hybrid and full-electric powertrains, but not until after the company is able to clear the plate it is currently chewing through.

The company is aiming to increase sales in the U.S., which is its largest single market with all-new versions of the Legacy and Outback mid-size models. Combined, the two nameplates account for almost 38 percent of its U.S. sales. The fourth generation Outback arrived for the 2010 model year as a larger vehicle focused on appealing to U.S. customers and sales roughly doubled as a result.

Subaru is currently working on expanding its Lafayette, Ind. plant capacity to a total of 200,000 units by the end of 2016. The $400 million project was announced in May, 2013 and will add 900 jobs in the state. The Japanese company’s first priority is expanding on its current products, Outback senior project general manager Masayuki Uchida said.

SEE ALSO: 2014 Subaru XV Crosstrek Hybrid Review

But once that portion of the company’s plan is complete, it will focus on the next phase: expanding its lineup of hybrid vehicles and developing an electric car. It won’t be the first time fielding either of those powertrains. In 2006, Subaru sold an electric Kei car and the company currently sells a hybrid version of its XV Crosstrek here.

Trouble is, Subaru is small and engineering resources are scarce, so developing new products is especially arduous. Uchida pointed to the company’s latest EyeSight safety system as an example. Even projects like that, he said, can be demanding enough on Subaru’s engineering team to put other projects put on hold. The latest version of EyeSight, a safety system lauded by the Insurance Institute for Highway Safety, debuts on the 2015 Outback this year.

Uchida declined to reveal which models are on deck for hybridization, but said that they will need to fall on the smaller end of Subaru’s stable. Subaru is leaning on fuel efficiency as a key selling point for its newest vehicles, of which most are offered with a continuously-variable transmission. The exceptions to that are the BRZ rear-wheel drive sports car and the WRX STI.

Rumors of the company planning a plug-in hybrid spiritual successor to the SVX sports car emerged last month and Uchida declined to verify them, but said that if the company were to build such a vehicle, it wouldn’t be until after it markets more mainstream hybrid and electric models.

Discuss this story at our Subaru forum

Luke Vandezande
Luke Vandezande

Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.

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  • Anthony Anthony on Aug 15, 2014

    "Uchida declined to reveal which models are on deck for hybridization, but said that they will need to fall on the smaller end of Subarus stable. Subaru is leaning on fuel efficiency as a key selling point for its newest vehicles" The little vehicles are economical enough. Hybridization pays off greatest on the biggest vehicles. That's where they'd deliver the best fuel efficiency enhancements- which, supposedly, Subaru is leaning on.

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