(May 13, 2024) Subaru plans  to team with Toyota on three new all-electric crossovers it has planned through 2026 as the small-sized Japanese player tries to minimize its risk in an electric-vehicle market that is cooling off but still requires massive investment in new technology, according to Automotive News.

“At the moment, it is quite difficult to predict how things will go from here with EVs,” CEO Atsushi Osaki said on Monday while announcing a 75 percent surge in fiscal year operating profit. “There is a huge risk for us to go it alone in this field,” Osaki said. “We have held talks with Toyota and have agreed that it is better to reduce risks through joint development.”

Having Toyota build Subaru’s EV locally in the U.S. buys Subaru time, while still allowing Subaru to qualify for federal EV tax credits under the Inflation Reduction Act.

As a bridge to that new EV lineup, Subaru will meanwhile deploy its next-generation hybrid system to its Crosstrek crossover in addition to the Forester. To better supply the popular Forester – the brand’s best-selling nameplate in the U.S. – Subaru will also add production of both the hybrid Forester and the traditional gasoline version to the company’s Indiana factory.

Source: Automotive News