"The great EV retreat continues as more and more automakers are pulling investments out of the battery race in favor of classic petroleum. Its latest victim? Subaru. The maker of damn near every car in Vermont plans to scale back its investments in EVs in favor of both hybrids and combustion-powered cars due to shrinking demand and America's brutal automotive tariffs."
"Subaru's $9.7 billion electrification plan has officially been derailed. The automaker's president confirmed during an earnings call on Monday that it will imminently transition its billions from an investment in electrification into a broader "growth investment" for the company. That wording might seem ambiguousand it isbut the message was crystal clear: EVs are out, and hybrids are in. Nikkei spills the details:"
"The Japanese automaker had announced plans to invest 1.5 trillion yen in electrification by 2030. It is not changing the amount, but the company now refers to it as a growth investment. With 300 billion yen already invested, the remaining 1.2 trillion yen will be reviewed. Subaru did not give a breakdown for the remaining investments. Subaru has about 80% of the money that it pledged to BEVs throughout 2030 still available. That remaining $7.8 billion is up in the air for now."
Subaru will reallocate its 1.5 trillion yen electrification plan into a broader growth investment, delaying full-scale BEV mass production due to weakening EV demand and U.S. automotive tariffs. The company has invested 300 billion yen so far and will review the remaining 1.2 trillion yen, with roughly 80% of BEV-pledged funds through 2030 still available. Subaru plans to prioritize hybrids and internal combustion models while still preparing three EVs. U.S. tariffs have cost Japanese automakers nearly $10 billion in six months. Chinese exporters are expanding via 'used' zero-mile EVs that undercut global markets.
Read at insideevs.com
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