The major shareholder and owner of 20% of the business is Toyota. As part of this agreement, Subaru has access to steel and other raw materials produced by the Toyota supplier network.
Subaru produces fewer vehicles than other of the major players because it only has two manufacturing facilities, compared to Toyota’s several facilities around the globe. Both the original plant and the second plant are in Lafayette, Indiana. The first facility is in Gunma, Japan.
In 2017, Subaru underwent a $400 million expansion of the factory after announcing plans to do so. When the Indiana factory manufactured its four millionth vehicle in 2019, it marked a significant accomplishment.
The headquarters of Subaru North American production is Subaru of Indiana Automotive, Inc. (SIA), a division of Subaru Corporation. In addition to the $400 million expansion indicated above, SIA invested $140.2 million in new machinery and equipment and made upgrades to boost its production capacity by roughly 100,000 units yearly to meet the rising demand for Subaru automobiles in North America.
In This Article...
Is Toyota a 20% shareholder in Subaru?
Today, Subaru Corporation declared that it has fulfilled the terms of the agreement between the two automakers by completing the purchase of Toyota Motor shares. Toyota strengthened its long-term collaboration with Subaru by increasing its ownership from 16.83 percent to 20 percent in September 2019. Today, Subaru paid $675 million for 8,973,700 shares of Toyota Motor Corporation.
The Japanese automakers state in today’s release, “Subaru will keep working to improve the long-term partnership between the two businesses and move forward. What does that mean for the Forester, Outback, and Ascent models of the upcoming generation?
Since 2005, Subaru and Toyota have collaborated to create new vehicles like the BRZ and GR86 sports coupe. The alliance will now advance and build an all-electric SUV as well as a platform specifically for battery electric cars (BEVs).
Both the all-wheel-drive and vehicle electrification technologies from Toyota and Subaru will be used in the new all-electric model. According to the statement from September 2019, “In the CASE (connected, autonomous/automated, shared, and electric) future, Toyota and Subaru want to develop ever-better cars than either business has been able to produce so far.
Toyota and Subaru are they merging?
What will the increased relationship mean for 2020 Outback, Forester, Crosstrek, and Ascent models from Subaru? That which won’t occur is this. At least not anytime soon, Subaru won’t be incorporated by Toyota Motor and turned into a completely owned subsidiary.
Subaru do you utilize Toyota parts?
Subaru is having a wonderful decade so far; its sales in the United States have doubled, and they are having difficulties meeting demand. While that’s fantastic news for Subaru, a thorough investigation by Reuters reveals that in order to keep the Foresters coming off the assembly line, Subaru and its suppliers have used some dubious but legal labor methods.
You should read the complete report from Reuters, which includes video interviews with employees and a graphic showing which companies supply certain pieces of a Forester.
- Since 2011, Subaru’s sales in the US have doubled; the Forester SUV crossover is particularly well-liked here. Its advertising showcases adoring families, adorable dogs, and incredibly durable cars, all with the slightly perplexing phrase, “Love. It distinguishes a Subaru as a Subaru.
- North of Tokyo in the Japanese city of Ota, there is a Subaru production facility. While some automobiles marketed in the United States are put together in an Indiana factory, Ota, Japan, is where Subaru and its suppliers source their parts.
- Workers from the poor world, some of whom are in Japan seeking asylum, are employed by Subaru and its suppliers. Reuters spoke with employees who were from 22 different Asian and African nations.
- A third or more of their wages may be paid to labor brokers, who are also utilized by Subaru’s suppliers in the garment and textile industries.
- Some employees join Subaru through traineeship programs, which ostensibly aim to teach trainees skills they can use when they return to their native nation. Once in Japan, trainees are unable to change employers, and according to the United Nations and the U.S. State Department, trainee conditions might resemble forced labor.
- According to the pay stubs that Reuters examined, Chinese trainees made around half as much money as a Japanese temporary worker would have for the same position.
- Because Japan is unique in that it needs workers but also has immigration restrictions, Subaru reportedly extensively relies on temporary employees and trainees. According to Reuters, foreign workers make almost 30% of the workforce at the Ota plants.
- The same factories that produce parts for Subaru also produce parts for Honda, Toyota, and Nissan, three other Japanese manufacturers.
- About 80% of Subaru’s vehicles are produced in Japan, and the company saw a rise in sales around the time when the law allowing for renewed six-month work licenses for asylum seekers was changed.
- Subaru claims that its suppliers must follow the law when it comes to the employment and treatment of their employees and that the business is ill-equipped to monitor all of its suppliers’ labor policies.
Subaru uses Toyota motors, right?
Toyota’s continued increase in interest in Subaru is for a good reason. The more ownership Toyota has over the business, the more control it has on the cars Subaru makes. The two businesses can more easily pool resources because of their similar interest.
The two businesses, according to Auto News, have significant future aspirations. These ambitions include creating a new generation of the Toyota 86 and Subaru BRZ, increasing all-wheel drive technology, and integrating Toyota’s hybrid drivetrain system into more Subaru vehicles.
Even though Toyota does not actually own Subaru, it is increasingly involved in shaping its destiny. It will be fascinating to observe if Toyota keeps increasing its ownership of the business.
Why do Subaru and Toyota produce the same vehicle?
The Subaru BRZ and Toyota 86 are the products of a partnership between the two Japanese automakers to create a reasonably priced rear-wheel-drive sports car. According to Road & Track, collaboration reduced expenses and sped up the design process, keeping sticker prices low. As a result, the coupes’ powertrains and chassis shared a number of mechanical parts. There were a few minute variations, though.
Toyota’s rendition initially debuted as the 2013 Scion FR-S. According to Car and Driver, the engine was a 2.0-liter flat-four with 200 horsepower and 151 lb-ft of torque, just like the Subaru BRZ. The FR-suspension S’s setup, though, rendered it more “tail-happy” than the BRZ, according to DrivingLine. The BRZ also included more standard equipment and a little superior cabin. But it did get more expensive as a result. However, according to Autoblog, by 2016 the two vehicles were basically identical.
According to Car & Driver, the FR-S was rebranded the Toyota 86 in 2017 after Scion was dissolved. The interior of the coupe was also overhauled by Toyota, and the suspension and anti-roll bars were modified. Additionally, Autotrader claims that cars with the six-speed manual received a modest increase in power from 200 hp and 151 lb-ft to 205 hp and 156 lb-ft. According to Car and Driver, the Subaru BRZ received these similar changes for 2017.
The Subaru BRZ and Toyota 86 were nearly interchangeable by 2020. According to Autotrader, they not only provided the same outputs but also the same functionality, albeit in a different way presented. The 86 features an optional TRD Handling Package, whereas the BRZ is a little bit more neutral out of the box, according to Mechanic Base.
Hyundai is Toyota’s property?
The major automakers with present presences in the United States are listed below, along with the brands they sell.
BMW, Mini, and Rolls-Royce are all owned by BMW Group. Smart and Mercedes-Benz are owned by Daimler AG. Lincoln and Ford are owned by Ford Motor Co. Chevrolet, GMC, Buick, and Cadillac all belong to General Motors. Hummer is back as a GMC subsidiary brand. In order to co-develop EVs, GM and Honda have an official collaboration. Acura and Honda are owned by Honda Motor Co. It collaborates with GM. Sony Honda Mobility is the name of the electric vehicle firm they founded with Sony. Genesis, Hyundai, and Kia are all owned by Hyundai Motor Group. Mazda is owned by Mazda Motor Corp. Mitsubishi, Nissan, and Infiniti are all owned by the Renault-Nissan-Mitsubishi Alliance. Following the merger of Fiat Chrysler Automobiles and Peugeot S.A., a new company called Stellantis was created. According to the explanation, the word is derived from the Latin verb “stello,” which means “to dazzle with stars.” Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram are now under Stellantis and are FCA brands that are offered in the United States. Other Stellantis automobile brands include Citroen, DS Automobiles, Opel, Peugeot, and Vauxhall. Subaru is owned by Subaru Corp. Jaguar and Land Rover are owned by Tata Motors. Owned by Tesla. Lexus and Toyota are owned by Toyota Motor Corp. Additionally, it owns stock in Suzuki and Subaru. The automotive brand VinFast, along with VinHomes, VinBigData, VinBioCare, and VinBrain, are all owned by VinGroup. Audi, Bentley, Bugatti, Lamborghini, Porsche, Scout, and Volkswagen are all brands owned by Volkswagen AG. Volvo, Polestar, and Lotus are all brands owned by Zhejiang Geely Holding Group (ZGH).
Why is Subaru not well-known?
So what has changed that might have rendered Subarus less dependable than they were in the early 2010s, when their popularity was at its peak. This might be the case for a few different reasons.
One is that, in comparison to some of its rivals, Subaru doesn’t provide as many models. This implies that if the reliability of one or two models declines, the brand as a whole may suffer. For instance, the entire Subaru lineup and their position in the reliability tables will be impacted if the dependability ratings for the Outback and Legacy decline.
Subaru is impacted differently than brands with a far wider variety of vehicles, like BMW and Mercedes-Benz. The reliability of the Mercedes-Benz or BMW brand as a whole won’t be significantly affected if one or two of the brand’s models become less dependable.
This has undoubtedly been the case with Subaru. The Legacy and the Outback have experienced issues, including sounds, leaks, and issues with the in-car technology.
They might also be viewed as less dependable in the UK because they are expensive to fix when they do go wrong.
ReliabilityIndex’s most recent statistics (2018) state that the average cost of repairs for all Subaru models is $562.37.
We cannot disregard Subaru’s high repair expenses because many customers would want to take this into consideration. The lack of Subarus in the UK is one of the factors contributing to the high cost of repairs. Because of this, their parts are more expensive and less widely available. Particularly if they need to be ordered from another country, this is true. This raises the cost of repairs, which in turn lowers reliability. Because of this, they might be viewed as less reliable and more expensive to fix in the UK. Simply put, it’s because they are less typical. Additionally, the cost of labor has significantly climbed in recent years. As a result, brands like Subaru have a lower reliability rating.
The issues that the Outback and Legacy have experienced with in-car technology are one of the main reasons Subaru reliability has declined. Since the early 2000s, dependability has generally declined in a number of makes and models for this reason.
Today’s autos feature a ton of innovative and sophisticated technology. While this seems fantastic on paper and is also extremely cool when you initially obtain the car, you may encounter issues with it in the future. There are a lot of moving parts, and they may have an impact on your car’s overall dependability. The cost of maintaining or upgrading the technology may further reduce its reliability.
Nevertheless, Subaru is not the most unreliable brand out there by any means, and they continue to build reliable vehicles that many motorists have no problems at all with.
Subaru: Does GM own it?
Actually, the response is fairly straightforward. General Motors acquired a 20.1% share in Fuji Heavy Industries, the company that controls Subaru, in 1999. (and would be renamed Subaru Corporation in 2017). However, there was a period when GM chose to take the Forester, slap Chevrolet labels on it, and sell it in India. This was before 2005, when GM sold and unloaded its whole ownership in the Japanese company.
It is difficult to determine exactly how many Chevrolet Foresters were sold in India, although they are believed to have been on the market for four years before being discontinued after GM sold its ownership in Fuji Heavy Industries. Although we were unable to locate any that are currently on the market, we did come across a few used examples that were advertised for sale in the Indian classifieds in recent years, such as the blue example from Cartoq below.
What does the Japanese word Subaru mean?
“SUBARU” is a combination of the Japanese word for “unite” and the Greek name for a group of six stars in the Taurus constellation known as the Pleiades. Greek mythology states that these stars are the transformation of Atlas’ daughters.
Is Subaru as dependable as Toyota?
One of the most crucial qualities to look for in a car is reliability. The most important thing is that the automobile starts and drives every time you get in it, regardless of how powerful the engine may be or how comfortable the cabin may be. When researching a new vehicle, buyers are almost certainly going to think about reliability, therefore it’s critical to understand how each manufacturer compares.
Two of the most well-known automakers in the US are Subaru and Toyota. Toyota is one of the most popular automotive companies worldwide, but Subaru only makes up 1.6% of the global auto market. It can be beneficial to know how these two automakers compare in terms of reliability before choosing your next vehicle.
How Do Subarus and Toyotas Compare for Reliability?
Subarus are less dependable than Toyotas overall. They consistently receive superior ratings from Consumer Reports and J.D. Power and have more distinctions and awards across all models. Toyota provides a model that has received great ratings and will meet your demands, whether you’re searching for an all-wheel-drive sedan or a truck with off-roading skills.
The MSRP of several Toyota automobiles is lower than Subaru’s. Additionally, all trim levels of the majority of their vehicles come standard with amenities like adaptive cruise control, Android Auto, and Apple CarPlay. They also have Toyota’s Safety Sense, which is a collection of security features like pre-collision and lane-keeping assistance. They become a better overall value and are much more reliable on the road in terms of both their mechanical and feature set.
J.D. Power Awards
Overall, Subaru’s reliability rating in J.D. Power’s 2021 research wasn’t particularly high. However, the compact SUV category’s top three most trustworthy models included the Subaru Forester. As a result, the Forester is regarded as one of Subaru’s most trustworthy cars among all of its other offerings.
Consumer Reports Score
Subaru, on the other hand, receives an extraordinary rating from Consumer Reports. The Subaru Outback and Forester took first place in each of their respective categories in 2021. Subaru came in third overall among the 32 brands that Consumer Reports examined.
Most Reliable Subaru Models
The Forester (shown above) consistently receives the greatest ratings out of all the vehicles that Subaru provides. In fact, 10 years after being bought new, 97 percent of Foresters are still reportedly on the road. This can reassure customers that they will be able to utilize their new Forester for many years after they buy it.
But the Subaru Crosstrek (seen in white above) is swiftly catching up. Consumer Reports gave the 2021 Crosstrek a predicted dependability rating of four out of five. As for the powertrain, this car is among the most dependable options available. The only areas where it had issues were with the interior equipment, such as the touchscreen and infotainment system.
As long as the correct maintenance and care are given, many owners have reported many years of trouble-free driving with their Subaru Crosstrek.
Least Reliable Subaru Models
Even while Subaru produces some highly trustworthy vehicles, certain of their models fall short of the competition.
For instance, the most recent expected dependability rating for the 2021 Subaru WRX gave it a two out of five rating. This is most likely because to problems with the EJ25 2.5-liter turbocharged engine, which will be replaced with the same engine found in the Outback and Legacy after the 2022 model year.
Only their larger SUV model, the AWD Ascent, received a lower rating from Subaru. Compared to other vehicles, this one has greater legroom and a better ground clearance, but those features don’t make up for its general lack of dependability. Warped brake rotors, which can result in screaming and potential brake problems, as well as a defective transmission harness are to blame for this reliability issue.
Toyota was successful in 2021 in obtaining J.D. Power dependability awards across three major categories. Large Light Duty Pickup went to the Tundra 4WD, Large Car went to the Toyota Avalon, and Minivan went to the Sienna. These impressive rankings line up with other honors the business has received throughout the years.
Out of all the vehicles examined for the Consumer Reports research in 2021, the Toyota Prius received the greatest reliability rating. You may be sure that this hybrid will be both dependable and safe thanks to its 54 mpg highway/50 mpg surface fuel economy and standard features like lane departure and blind spot warnings. Toyota placed second overall in their yearly rankings with a score of 78 out of 100.
Most Reliable Toyota Models
The Prius is by far Toyota’s most dependable car. This is because before the car was put on the market, each component had to pass stringent testing. Toyota engineers understood that in order to revolutionize transportation, they needed to make the traditional components of the car as robust as they could.
For this reason, the car’s internal combustion engine was the tested Echo engine. You can be certain that the connecting rods will hold up to years of service because the crankshaft and all of them are factory-forged.
Other vehicles made by Toyota are renowned for their dependability. One of the very few vehicles that Consumer Reports has designated as a vehicle that they recommend is the Toyota Corolla. With the exception of the first two years it was in production, it has received this honor every year. This is largely a result of the model’s durability and ongoing advancements over the course of twelve generations. Corollas are known for their endurance because of their straightforward design, which prioritizes functionality above performance.
Least Reliable Models
Despite being one of Toyota’s best-selling vehicles, the RAV4 has been rated as the least reliable Toyota. Even though the RAV4 is renowned for its superior capacity for towing and superb interior headroom, the automatic transmission has frequently experienced shifting latency issues. Additionally, a lot of customers have complained that the RAV4 tends to pull to the side even when the steering wheel is kept straight.
Over the years, the Toyota Camry has also experienced its fair share of dependability problems. The most serious complaints from owners include unintentional acceleration and hesitation when changing speeds. A problem that has dogged it for many generations is its reputation for consuming too much oil. This is still a problem and has been ascribed to bad piston rings.
What Makes a Vehicle Reliable?
It’s one thing to claim that a car is trustworthy, but it’s crucial to understand what that really means. Since reliability can mean different things to different individuals, measuring it can be challenging. A car can, however, fall into a few categories that, depending on how it operates, can increase or decrease its reliability.
A dependable car will typically possess characteristics that give the driver faith in how it will perform. It will also be a car that you feel at ease driving on a lengthy journey. Although reliability can be quantified much more precisely, these characteristics are still significant.
Longevity
Longevity is one of the most crucial elements of reliability. It’s simple to classify a car as reliable if it lasts for a long period and has a high mileage capacity. It is probably safe to claim that your car has been dependable if it has survived for many years and has been able to travel more than 200,000 miles. Both Subarus and Toyotas have a reputation for being durable and reliable for a long period.