Subaru Caves Under Tariff Pressure, Jacks Up Prices

Automakers are still trying to figure out the full impact of President Trump’s tariffs on new cars and the parts that go into them. Some automakers have offered discounts, others have stopped imports completely, and more yet have begun looking at altering their production mixes to help skirt the extra costs as much as possible and avoid passing them along to consumers.

Subaru is the latest to boost prices in response to the tariffs. Prices are going up as much as $2,055, depending on the model. It’s not the company’s Japanese-built models like the WRX that are getting the highest increase, either. That indignity goes to the made-in-Indiana Ascent.

Higher Prices Will Start In June

“The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products,” the company told CarScoops in a statement.

Though the Japanese automaker didn’t blame tariffs directly, it cited “current market conditions.” Tariffs are the largest force in effect on current market conditions.

Price hikes were also detailed on the site of a Massachusetts dealer called Planet Subaru. Though the page has since been taken down, it said that prices would climb in June, but it expected them to climb again before the end of the year.

The increases are not yet on Subaru’s consumer site, which currently displays a message reading “MSRPs currently listed on this site are being adjusted and may not apply to all vehicles in retailer inventory. This site will be updated shortly to reflect new pricing.”

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According to the report, prices for the Ascent will increase by $1,085 to $2,055. The Crosstrek and Impreza will climb $750. The Forester will see a boost of $1,075 to $1,600, the Legacy $1,600, the Outback $1,715 to $1,810, and the WRX and BRZ $2,000. The Solterra will not face a price increase.

Subaru Looking At Shifting Production

Subaru currently builds the Outback, Ascent, and Crosstrek at its plant in Indiana, as well as the new Forester. Around half of Subaru vehicles sold in the US are built there. Subaru’s most American model is the Ascent, according to NHTSA documents, with 50 percent by value made in the US. Engines and transmissions for all Subaru models are imported from Japan.

The automaker is reportedly looking to expand production at its US plant. An increase from 345,000 vehicles per year to 500,000 is said to be possible, but Subaru’s local suppliers can’t handle that volume.

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Subaru has been on a run of sales success over the past few years. Last month, it posted its 33rd consecutive month of sales growth for the brand and the best-ever April for the Crosstrek. Year to date, the brand is up 6.8 percent over last year. It’s not clear how these higher prices will impact the brand, as Subaru is unlikely to be the only one hiking prices.

Source: CarScoops