Subaru Outback Is Leaving Its U.S.-Made Home, What’s Replacing It?

Why is the Outback leaving?

Why would Subaru Corporation consider moving the popular Outback midsize SUV production away from its U.S. plant to Japan? The Outback is a top-selling model for Subaru of America, and it would take longer to ship from Japan. It sounds like a bad idea, but given the current automotive landscape, it makes sense when you find out what will replace it on the U.S. assembly line. 

First, let's look at the Outback's success. 

Since its debut in 1995, the Outback has been a symbol of success, becoming one of the most popular models in America. The Outback has been proudly built at Subaru of Indiana Automotive (SIA) since its inception, a testament to our commitment to quality and innovation. 

Subaru of America (SOA) sold its three-millionth Subaru Outback midsize SUV/Crossover/Wagon in June. Why make a manufacturing shift now? 

Automotive News (by subscription) says, "Subaru is expected to consolidate production of its Outback midsize crossover in Japan in 2025 and produce a hybrid version in 2026, freeing up capacity to produce EVs in the U.S. to qualify for federal tax incentives." 

The Outback will also undergo significant changes in 2025 and 2026. The midsize 2-Row SUV will receive a complete redesign for the 2025 model year. We knew that. I reported last September that the Outback production would possibly move from Lafayette, Indiana, to Gunma, Japan. Read my report here.

Now it's looking more and more likely. 

The Outback will get "A full redesign of the midsize crossover is expected in 2025, when production is expected to move to Japan from Indiana, with a reengineering in 2026 to add an optional hybrid powertrain," says Automotive News.

That is a significant development for the popular Outback produced at Subaru of Indiana Automotive (SIA), where they recently produced its three millionth Outback model. 

The Outback, built in Japan after 2025, will get a new hybrid powertrain. Subaru Corporation will get the Outback hybrid technology from Toyota, and the new trim level will be introduced after the Forester Hybrid arrives next year.  

What will replace the Outback on SIA's assembly line?

Two models will replace the Outback. The next-generation Forester will begin production sometime next year after the Legacy sedan vacates the space. Subaru of Indiana Automotive needs the room on its assembly line to produce the U.S.-specification Forester and likely the all-new Forester Hybrid. 

A new Midsize electric wagon is coming in 2028.

The Automotive News report says, "Keeping to the brand's heritage, an Outback-size electric wagon will debut in 2028."

I have just heard about a new Subaru EV wagon. It will be the size of the Outback midsize SUV. Instead of building a battery-electric Outback, Subaru Corporation will produce an all-new all-electric wagon. 

The new Subaru Wagon EV will likely be developed in-house on the e-Subaru Global Platform, and Subaru has not yet confirmed it, but it could be manufactured in Lafayette, Indiana, alongside the new Forester for North American customers. 

I reported earlier that there were more changes for Subaru customers. Here is a recap of the new models for North American customers heading their way. Read my report here for more information.

Subaru will offer three new EVs in North America.

• An Ascent-sized 3-Row EV built in Kentucky in collaboration with Toyota in late 2025. 
• A Forester-sized compact SUV EV developed in-house on the e-Subaru platform is set to debut in 2027.
• An Outback-sized electric wagon developed in-house on the e-Subaru platform will debut in 2028.

Subaru will offer North American customers three or four new hybrid models.

• The all-new Forester hybrid is due next spring, 2025.
• The Outback will offer an optional hybrid powertrain due in 2026. 
• The Crosstrek and Outback will likely offer an optional hybrid powertrain due in 2026. 
• A new Ascent hybrid could follow the Forester and Outback and remain for another generation with an optional hybrid powertrain.

It's the end of a successful era and the beginning of a new one. 

It's more likely that Outback production will leave its U.S. plant in Indiana and move to the Gunma, Japan manufacturing plant. New battery-electric vehicles will be produced in the U.S., and significant changes are coming. I will keep readers informed as announcements are made. Stay tuned. 

As Subaru embarks on this journey of change, we value your input. Would you consider purchasing a new Outback-sized electric wagon made in America? Your feedback is important to us. Click the red 'Add new comment' link below and let us know your thoughts.

I am Denis Flierl, a top Torque News reporter since 2012. I’ve invested over 13 years in the automotive industry in a consulting role, working with every major car brand. I am an experienced Rocky Mountain Automotive Press member. You'll find my expert Subaru analysis here. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Subaru USA