Subaru Corporation

What does Subaru make?
Subaru Corporation manufactures passenger vehicles under the Subaru brand, including the Outback, Forester, Crosstrek, Impreza, Legacy, Ascent, WRX, BRZ, and Solterra. The company is known for its symmetrical all-wheel drive system and horizontally opposed boxer engines. Subaru also produces aerospace components for commercial aircraft manufacturers including Boeing.

Is Subaru publicly traded?
Yes, Subaru Corporation is listed on the Tokyo Stock Exchange under ticker 7270. Toyota Motor Corporation holds approximately 20% of Subaru's shares, making it the largest single shareholder. The remaining shares are held by institutional investors and public shareholders.

Who founded Subaru?
Subaru Corporation traces its origins to Fuji Heavy Industries, Ltd., established in 1953 as a successor to Nakajima Aircraft Company. Kenji Kita was a key figure in the founding of Fuji Heavy Industries. The company produced its first Subaru automobile, the Subaru 360 microcar, in 1958. Fuji Heavy Industries renamed itself Subaru Corporation in April 2017.

Where is Subaru headquartered?
Subaru Corporation is headquartered in Shibuya, Tokyo, Japan. The company's primary manufacturing facilities are in Gunma Prefecture, Japan, and in Lafayette, Indiana, USA (through Subaru of Indiana Automotive). Subaru of America, the company's U.S. subsidiary, is headquartered in Camden, New Jersey.

How many vehicles does Subaru sell annually?
Subaru sold 896,000 vehicles globally in FY2026 (ended March 2026), with 793,000 sold overseas and 103,000 in Japan. For FY2027, the company forecasts 940,000 unit sales, representing a 4.9% increase. The United States accounts for the majority of overseas sales.

Who owns Subaru Corporation?
Subaru Corporation is publicly traded on the Tokyo Stock Exchange. Toyota Motor Corporation holds approximately 20% of Subaru's shares, making it the largest single shareholder. The remaining shares are held by institutional investors and public shareholders. Atsushi Osaki serves as President and CEO.

What is Subaru's revenue?
Subaru reported revenue of approximately 4.79 trillion yen for FY2026 (ended March 31, 2026), a 2.1% increase year over year. Operating profit was 40.1 billion yen, down 90.1% from 405.3 billion yen in FY2025. For FY2027, Subaru forecasts revenue of 5.20 trillion yen and operating profit of 150 billion yen.

What is the Subaru Management Policy 2025?
The SUBARU Management Policy 2025, announced on November 10, 2025, is a strategic framework designed to navigate a challenging business environment. It emphasizes flexibility in mixed-model production, adjustments to production and sales across markets, expansion of ICE, HEV, and alliance BEV model lineups, and maintaining steady sales in the increasingly competitive U.S. market.

Subaru Corporation traces its origins to Fuji Heavy Industries, Ltd., established in 1953 as a successor to Nakajima Aircraft Company, a major Japanese aircraft manufacturer during World War II. Nakajima Aircraft was dissolved following Japan's defeat in 1945, and its assets were reorganized into several companies that eventually merged to form Fuji Heavy Industries.

Fuji Heavy Industries produced its first automobile, the Subaru 360 microcar, in 1958. The Subaru 360 was a significant achievement for postwar Japan, providing affordable personal transportation during the country's economic recovery. The name "Subaru" comes from the Japanese word for the Pleiades star cluster, which is depicted in the company logo.

The company introduced the Subaru Leone in 1971 with optional four-wheel drive, an early precursor to its commitment to AWD. Subaru introduced its symmetrical all-wheel drive system in 1972, a technology that would become the defining characteristic of the brand.

The Subaru Legacy and Impreza were introduced in 1989 and 1992 respectively, establishing the core of the modern Subaru lineup. The Impreza WRX, introduced in 1992, became a rallying icon, winning multiple World Rally Championship titles and establishing Subaru's performance credentials.

The Subaru Outback, introduced in 1994 as a raised wagon variant of the Legacy, became one of the company's most successful models, particularly in the United States and Australia, where it helped define the crossover segment.

Fuji Heavy Industries renamed itself Subaru Corporation in April 2017, aligning the corporate name with its primary automotive brand. The aerospace division continues to operate under the Subaru brand, manufacturing components for Boeing and other aerospace customers.

In FY2025 (ended March 31, 2025), Subaru reported revenue of approximately 4.69 trillion yen and operating profit of 405.3 billion yen, reflecting strong performance in the U.S. market. The following year brought significant challenges. In FY2026 (ended March 31, 2026), revenue increased 2.1% to 4.79 trillion yen, driven by price and mix improvements. However, operating profit collapsed 90.1% to 40.1 billion yen. The decline was caused by additional U.S. tariffs, a temporary shutdown of one production line at domestic plants, shipping delays due to rising tensions in the Middle East, and a BEV impairment loss.

For FY2027 (ending March 31, 2027), Subaru forecasts revenue of 5.20 trillion yen and operating profit of 150 billion yen, representing a recovery of 273.9% in operating profit. The company plans to expand its product lineup of ICE and HEV models, including the Forester and Crosstrek, along with alliance BEVs developed with Toyota.

Subaru has positioned itself as an environmentally conscious automaker, though its sustainability profile has both strengths and limitations.

The company's manufacturing plant in Lafayette, Indiana (Subaru of Indiana Automotive) was the first auto assembly plant in the United States to achieve zero landfill status, a milestone it reached in 2004. The plant sends less than 1% of its waste to landfills. Subaru has since expanded zero-landfill practices to its Japanese facilities.

Subaru has committed to electrification, though its pace has been slower than some competitors. The Solterra BEV, launched in 2022, is the company's first fully electric vehicle. The company plans to expand its BEV lineup with alliance models developed alongside Toyota. In FY2027, Subaru plans to add more HEV variants of existing models like the Forester and Crosstrek, reducing emissions while maintaining its AWD value proposition.

The company has not set an independently verified net-zero target through the Science Based Targets initiative (SBTi) as of August 2026. Subaru's sustainability reports are self-published and have not been independently certified by third-party organizations like B Lab or CDP at the corporate level.

Subaru's brand identity has long been associated with outdoor recreation and environmental stewardship, particularly through its partnership with the National Park Foundation in the United States. The company has supported zero-landfill initiatives in national parks, extending its manufacturing waste reduction practices to public lands.

Subaru has received consistent recognition for safety and reliability from independent rating organizations.

• IIHS Top Safety Pick: Multiple Subaru models, including the Outback, Forester, Crosstrek, and Ascent, have received Top Safety Pick or Top Safety Pick+ ratings from the Insurance Institute for Highway Safety (IIHS) in recent years. Subaru has marketed this safety record extensively.
• NHTSA 5-Star Ratings: Several Subaru models have received 5-star overall safety ratings from the National Highway Traffic Safety Administration.
• Consumer Reports Reliability: Subaru has consistently ranked above average in Consumer Reports' annual reliability surveys, particularly for the Forester and Crosstrek.
• Wards 10 Best Engines: Subaru's 2.4-liter boxer engine has been recognized on Wards 10 Best Engines lists.
• National Park Foundation Partnership: Subaru's partnership with the National Park Foundation, including its zero-landfill initiative, has received recognition from environmental and parks organizations.

Subaru has faced several product quality issues in recent years. The company issued significant recalls related to oil consumption problems in its 2.5-liter four-cylinder engines, affecting multiple model years of the Outback, Forester, and other models. Subaru also faced recalls related to the Takata airbag inflator defect, which affected millions of vehicles across the industry.

The company has faced scrutiny in Japan regarding workplace practices and labor conditions at its manufacturing facilities. Reports of excessive overtime and inadequate oversight of subcontractor practices have drawn criticism from labor rights organizations.

In FY2026, Subaru's financial results were negatively affected by U.S. tariff policy. The company disclosed that additional U.S. tariffs contributed to the 90.1% decline in operating profit. While not a controversy specific to Subaru, the tariff impact illustrates the vulnerability of Japanese automakers to U.S. trade policy changes.

The company has also faced questions about its pace of electrification. Environmental groups have noted that Subaru's BEV lineup remains limited compared to competitors, and the company's reliance on Toyota for BEV platform technology raises questions about its independent electrification capability.