(Bloomberg) —
Subaru Corp. plans to expand production in the US to mitigate the impact of tariffs imposed by US President Donald Trump.
Subaru “will continue developing our products in Japan, but it’s inevitable for us to expand our capacity in US,” Chief Executive Officer Atsushi Osaki said at a Wednesday press conference in Tokyo, noting the company faces a $2.5 billion tariff hit unless it takes measures to mitigate the impact.
The Tokyo-based carmaker gets close to 80% of its revenue from North America, with more than half of its vehicles for the market manufactured in Indiana, according to Osaki. In response to the tariffs, the carmaker plans to review all its investments, including for electric vehicles, while price hikes are also on the table.
The company targets annual operating profit of ¥100 billion ($686 million) — 75% below the most recent fiscal year — “as an initial target” though withheld more detailed guidance for the current fiscal year ending March 31, 2026, citing uncertainty surrounding US trade policy, according to a filing. It also plans to implement measures including incentives and cost controls, and will announce an update when it becomes “possible to make a reasonable forecast.”
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