New Subaru Boss On Recalls, New Model Inventory And What’s Next For Customers

What can Subaru customers expect in the second half of 2023? In an interview with Automotive News (by subscription), new Subaru of America (SOA) President and CEO Jeff Walters gives further information on new model inventory levels, recalls, and what new models are coming for U.S. customers.

Walters says customers will see improvements in its new model inventory.

Subaru of America has the tightest inventory of new models like the Crosstrek subcompact SUV and Forester compact SUV. As a result, customers have had to wait months for new models to arrive from Japan. But things are changing as inventory levels improve.

Jeff Walters says. "Our production is improving. For the first time in a few years, Subaru Corporation is coming back to us and adding units back into our plan, and that hasn't happened for quite a while, so that's been really good for us."

Subaru of America has not seen inventory levels above eight or nine percent for the past two years. However, when asked about the ongoing parts shortages and challenges, he says things have improved significantly since 2022.

Walters says, "At this point last year, we'd wrap up a month and have 5,000 or 6,000 cars on the ground across our 639 retailers, less than ten cars each, on average. We're wrapping up the month with 20,000 to 23,000 cars. It's still only an average of 35 cars per store, but it feels like much more. It's still incredibly lean, though. The retailers are doing a great job, being very efficient with the inventory and the car lines, which are all still moving along very well for us."

How is Subaru doing with recalls of its new models?

In 2022, Subaru of America had seven recalls affecting 520,280 vehicles. In addition, Subaru Corporation also recalled the 2023 Subaru Solterra manufactured in Japan by Toyota Motor, and 2,600 EVs were affected. However, the number of Subaru recalls is down compared with other automakers in the U.S. market, where Subaru has nearly 70 percent of its global sales.

Walters says, "Our recall business as a part of our total parts sales has decreased significantly. So all the big things so far this year, the important things, have been pretty good for us."

What new models are coming for U.S. customers?

Walters says, "I would say that our product lineup, with the announcement that new Subaru Corporation CEO Atsushi Osaki made about future EVs joining the Solterra in our lineup in 2025 and 2026, has never been more full or robust in the history of the company. So we are going to be busy launching a lot of new car lines."

Three new EVs are coming.

We recently reported that Subaru plans new EVs for U.S. customers by the end of 2026 and will add capacity to build 400,000 full-electric cars in Japan by 2028. The rapid expansion plan signals a new goal by Subaru to have 40 percent of its global sales from electrified vehicles by the decade's end.

Walters says, "(Our retailers) will be ready. We had a modest and slower launch for the Solterra, but that's been OK. We put that car out there with fairly modest expectations. Still, at the same time, we also launched it nationally, in part because this was an exercise we wanted to undertake with that car line to learn how to sell electric vehicles. When you don't have that knowledge, and you're starting from a fresh sheet of paper, there is a lot to learn because as we get closer to the 2025-26 calendar years, the expectations will ramp up quickly."

Subaru says they also plan a next-generation hybrid vehicle by 2025, which will likely be a new Crosstrek subcompact SUV. In addition, other new Hybrid models will use Toyota's hybrid system and be made at Subaru's Gunma complex.

The interview with the new Subaru of America President and CEO, Jeff Walters, reveals inventory levels of the 2024 Subaru Crosstrek, Forester and other new models are improving. Recalls are down, and new electric SUVs will come to U.S. customers in the next two to three years.

Walters says, "You've got to have the product, you've got to have a new product, and you've got to have a great product to succeed in this business, and we think we're going to have that in spades over the next three years."

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Denis Flierl has invested over 30 years in the automotive industry in a consulting role working with every major car brand. He is an accredited member of the Rocky Mountain Automotive Press. Check out Subaru Report, where he covers all of the Japanese automaker's models. More stories can be found on the Torque News Subaru page. Follow Denis on Facebook, Twitter, and Instagram.

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Photo credit: Subaru USA