Subaru In Europe: Staying In The Midst Of The Electification Storm And The Onslaught Of Chinese Manufacturers

JAKARTA - In the midst of a large-cost electrification wave and the invasion of Chinese manufacturers at competitive prices, the European automotive industry is facing difficult times. Even the biggest car manufacturers feel pressured, especially for small manufacturers who have to fight hard for each sale. So, why bother?

European Subaru Boss David Dello Stritto understands that question very well.

"You might think, 'OK, we sell around 30,000 cars a year in Europe, while in the US we sell around 700.000. So, why bother?'" said the Scottish man, quoted from Autocar, Monday, July 21.

Indeed, Subaru is much more successful in the market where their multipurpose 4x4 vehicles are more popular and electrification is not too much of a major issue. Mitsubishi, their rally racing rivals in the past, have even drastically reduced its operations in Europe years ago.

"I tell you, Subaru Corporation has repeatedly stated that it has no intention of leaving Europe. They want to stay in Europe," said Dello Stritto.

He explained that Subaru could not simply transfer European sales to the saturated American market, which currently accounts for about 75 percent of the brand's volume and they are also struggling in China against domestic companies. But, most importantly, there is pride in Subaru to become a global company.

So, Subaru wants and needs to be present in Europe, but this creates a challenge. While large manufacturers can deploy their resources between the development of electric lines and combustion, small ones like Subaru cannot. This is one of the reasons why their early efforts in electric vehicles, such as Solterra and future E-Outback (known in the US as Trailseeker) and Uncharted, were developed together with Toyota.

"We have no choice," said Dello Stritto. "We have to move from what we currently have to the full battery-based electric vehicle in Europe as soon as possible. This is his vision."

Subaru is targeting an increase in global sales from 976.000 units last year to around 1.2 million units by 2030, with about half being electric cars. Yes, fully electric: the company has developed a full-hybrid powertrain (in the name of the e-Boxer), but is not considering plug-in hybrid or range-extender EV technology.