Subaru Outback's Future in Australia: Key Insights Amid Production Changes in Japan

2024-10-29
Subaru Outback's Future in Australia: Key Insights Amid Production Changes in Japan banner

The Subaru Outback has long been a staple in the Australian automotive market, and recent news has sparked discussions about its future. Despite Subaru's announcement that it will cease production of the Outback for the Japanese market, Subaru Australia has reassured customers that this decision will not impact the availability of the Outback in Australia.

Production Changes in Japan

According to Subaru's Japanese website, production of the Legacy Outback will end, with the company stating, “We will stop accepting orders after March 31, 2025.” This announcement has raised questions about the sourcing of future Outback models for the Australian market.

A spokesperson for Subaru Australia clarified, “In relation to the Outback announcement, it is for the Japanese market only and will not impact the production of the Outback for the Australian market.” This reassures Australian consumers that the Outback will continue to be a key part of Subaru's SUV lineup locally.

Sourcing the Outback: What's Next?

The key question now is where the Australian market will source its Outbacks if production ends in Japan. There are a few potential scenarios:

  1. Continued Production for Overseas Markets: It’s possible that the announcement may not fully reflect Subaru's plans to continue producing the Outback for markets outside Japan. Historically, several vehicles are manufactured in Japan but are not sold there, such as the Mazda 6 and Toyota Camry.
  2. Switch to U.S. Production: Alternatively, Subaru Australia may pivot to sourcing the Outback from its production facility in Lafayette, Indiana, USA. This wouldn’t be unprecedented, as other Japanese brands like Toyota and Nissan already export U.S.-made vehicles to Australia.

The Outback has been manufactured in the U.S. since 2019, but it didn’t arrive in Australian and Japanese markets until 2021. This suggests that Subaru is preparing for a next-generation Outback, especially as its sedan counterpart, the Legacy, is scheduled to exit production in 2025.

Future Production and Hybrid Options

Automotive News has reported that the production of the Outback for the U.S. market is set to transition from the U.S. to Japan, which would help clear the Indiana assembly line for electric vehicle production. The next-generation Outback is expected to enter production in 2025, with a hybrid variant set to debut in 2026. This aligns with Subaru's commitment to sustainability and electrification.

The Outback holds significant importance in Australia, where it is the brand’s third-best-selling model, trailing only the Forester and Crosstrek. It also remains a vital vehicle in the U.S., where it was Subaru's best-seller last year, contributing to the company's total sales of 632,086 vehicles.

Celebrating 30 Years of the Outback

As production in Japan winds down, Subaru is celebrating the Outback's legacy with a special 30th Anniversary edition. Limited to 500 units, this edition features the turbocharged 1.8-litre four-cylinder Boxer engine, producing 130 kW of power and 300 Nm of torque. Enhancements include front and rear dampers tuned by Subaru's STI division and an aesthetically upgraded interior with ivory and black two-tone Nappa leather, matte black 18-inch alloy wheels, and exclusive badging.

Since its debut in 1994, the Outback has evolved significantly, known as the Legacy Grand Wagon in Japan and the Legacy Outback in the U.S. Its introduction to the Australian market came in 1996, where it quickly established itself as a favorite among SUV enthusiasts.

Conclusion

While the future of the Subaru Outback's production in Japan raises some questions, Subaru Australia remains committed to this beloved model. With plans for a next-generation Outback and the potential for hybrid options, the Outback is poised to maintain its strong presence in the Australian automotive landscape. Whether sourced from Japan or the U.S., it is clear that the Outback will continue to serve the needs of Australian customers for years to come.

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