Subaru Probably Won't Build EVs In North America, Citing High Wages At McDonalds

Kevin Williams
by Kevin Williams

Apparently, the Inflation Reduction Act’s clauses aren’t strong enough to get Subaru to invest in US EV manufacturing.

In a report from Automotive News, Subaru says that probably won’t invest in US EV manufacturing. The brand’s CEO Tomomi Nakamura cites inflation, and rising American manufacturing costs as the reasons for Subaru’s lack of interest in investing in US manufacturing sites.

Curiously, Nakamura cites the wages at the local Mcdonald’s, claiming that Mcdonald’s workers in Indiana can make $20 to $25 per hour, which is about as much as a temp employee at the Subaru plant would make. Subaru thinks that if it were to expand, it would have a hard time finding employees to work for the wages it would offer.

Without being produced in North America, Subaru’s EV efforts won’t qualify for the Inflation Reduction Act’s tax credit, potentially putting their vehicles at a price disadvantage. Subaru’s lone EV, the Solterra, is made in Japan. The Solterra has only begun to slowly trickle on dealer lots.

It’s an odd comment from the manufacturer and one that bucks the trends from other OEMs who have increasingly decided to invest in North American manufacturing. Even Toyota and Honda have big plans to make EVs here, but it looks like Subaru’s going to sit this one out.

Subaru wants to go completely electric by the mid-2030s. Given the fact that North America is one of its biggest markets, it seems a bit short-sided to not invest in any sort of EV production on the continent.

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Kevin Williams
Kevin Williams

Kevin has been obsessed with cars ever since he could talk. He even learned to read partially by learning and reading the makes and models on the back of cars, only fueling his obsession. Today, he is an automotive journalist and member of the Automotive Press Association. He is well-versed in electrification, hybrid cars, and vehicle maintenance.

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