Subaru 3-row electric SUV to be built in the US by Toyota

In a groundbreaking move for the automotive industry, Subaru and Toyota have joined forces to create a Subaru 3-row electric SUV set to be built in the United States. This partnership marks a significant step towards a greener future as both automakers leverage their expertise and resources to develop a cutting-edge electric vehicle (EV) that promises to revolutionize the SUV segment.

In the coming years, a brand-new three-row Subaru electric SUV is anticipated to enter the market. Toyota’s production site in Georgetown, Kentucky, will be used to construct the EV.

Subaru 3-row electric SUV will be produced by Toyota

Toyota will start producing the new three-row electric SUV in 2025, shortly after starting production of its own larger EV model, according to sources familiar with the plans.

Toyota said at the end of May that it would start building its own three-row electric SUV, with production set to begin in 2025. It is currently referred to as the bZ5X.

The action follows Subaru and Toyota’s 2019 collaboration to create a new platform for the introduction of a few electrified SUVs under each brand.

Also read: Toyota’s New Trademark Electric Lexus Three-Row SUV Signals a Paradigm Shift in Luxury EVs

Both of the Japanese automaker’s first electric SUVs, the Subaru Solterra and the Toyota bZ4X, are powered by the e-TNGA platform.

At its Motomachi assembly plant in Japan, Toyota put two automobiles together on the same assembly line. Following the discovery that wheel hub bolts could become loosened under specific driving circumstances, potentially resulting in the wheel coming off while driving, production was put on hold in June of last year.

Toyota resumed sales last October after a temporary suspension of more than four months. Subaru promised to introduce at least four electric crossovers in the US by the end of 2026, despite the fact that no other information regarding the new three-row electric SUV was provided.

Batteries for Subaru’s electric SUV are anticipated to come from Toyota’s brand-new battery factory in North Carolina. Toyota invested an additional $2.1 billion earlier this year, increasing the total to roughly $6 billion since the factory was first unveiled in 2021.

Also read: Toyota Creates New Role to Boost EV Production in North America

Six production lines at the NC site will manufacture lithium-ion batteries, although four of them are reserved for hybrid vehicles.

Subaru 3-row electric SUV
Image Credit Electrek

Both Toyota and Subaru may be eligible for the $7,500 EV tax credit with their new three-row electric SUVs thanks to final assembly in Kentucky and battery packs imported from North Carolina. The bZ4X and Solterra EVs are not accepted.

Toyota intends to introduce ten new electric vehicles with a goal of selling 1.5 million EVs by the year 2026. With plans for a dedicated EV platform, next-generation batteries, improved manufacturing, and other advances to boost competitiveness, the automaker has recently expanded EV projects.

Subaru, on the other hand, expects to have an entirely electric portfolio available by the “early 2030s” and aims for 40% of global sales to be electric by the end of the decade.

Before it’s too late, Toyota, which owns around 20% of Subaru, wants to position both the manufacturer and itself for the future of the market.

In China, the largest EV market in the world, Japanese manufacturers have previously lagged behind, but some are now trying harder after seeing what can happen when a market shifts beneath their feet.

Toyota may benefit from the tax credit offered by the Inflation Reduction Act by manufacturing EVs and batteries in the US, which will help it compete as the US transitions to an all-electric future.

Subaru may obtain a (greatly needed) foothold in the US market by employing Toyota’s assembly line and battery manufacturing.

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