CHICAGO — More and more electric vehicles will be hitting the road over the next five to 10 years, but the shift from fossil fuel-powered cars to EVs may not happen as fast as the federal government hopes, Subaru of America President and CEO Thomas J. Doll told the Economic Club of Chicago during an appearance at the Chicago Auto Show.
Subaru’s decision to invest in electric vehicles is a calculated risk, he said.
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« We’re a David and Goliath story at Subaru, » Doll said. « We’re competing against the behemoths of the auto industry. Our parent company worldwide only sells about 1.2 million vehicles a year. We sell a great preponderance of that — maybe 70% or 75% — in the United States. So for us to make the decision to make electric vehicles, it really is a bet-the-company decision. »
Subaru’s only plant in North America is in Indiana. The automotive factory in Lafayette employs more than 5,900 workers who make the Subaru Legacy, Subaru Outback, Subaru Impreza and Subaru Ascent.
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« We want to make sure the trend is going to really occur, » he said. « Once we make that decision, it’s almost like there’s no turning back at that point. We have to make sure we make the right decision. »
Subaru is rolling out the all-new 2023 Subaru Solterra EV SUV to kick off its electric vehicle lineup.
« We need to be sure the market is going to tip the way we need it to tip for us to maintain our profitability so we can continue to service our customers, » Doll said.
Doll believes Subaru’s customers are already more concerned with the environment and sustainability than most car buyers, making the transition smoother.
« Our brand is so environmentally friendly. We have a great relationship with the National Park Foundation. We’re the largest contributors to the National Park Foundation. Out of all the companies and all the businesses in the world, nobody contributes more to our National Parks than Subaru. We also do zero landfill at all of our places around the country — our headquarters building in Camden, New Jersey, all of our warehouses, our regional offices in Arizona. We don’t just talk it. Our customers know we actually live it and breathe it. »
But questions remain, particularly with the timing.
« How soon will customers want to purchase based on the higher cost levels, length of charge and infrastructure? » he said. « There’s a lot of factors still to consider. The government target is 50% by 2030. Me, sitting in my position today, I think that’s a little high. But could we get to 25% or 30%? That’s possible. I think Subaru, because of the environmental nature of our customers, could transition faster than other brands. »
Subaru is gradually getting back to more normal production as the supply chain problems during the pandemic start to sort themselves out.
« Unfortunately, we’re in a position where we can’t produce the number of cars we could sell, » Doll said. « Not just us, but everyone could be selling more cars to the market if we had chips available, but we don’t. It’s better than it was six months ago. It’s better than it was a year ago. It’s slowly getting better. But we all could have sold more cars over these past three years. »
The company is prepared if a recession does take place but is not planning layoffs.
« We’re gun-shy about letting go any workers, particularly at our Indiana plant, » he said. « We won’t be able to get them back. »
