Who Makes Subaru? The Story Behind The Japanese Brand

In today’s crowded automotive market, certain brands stand out for their distinct identity and devoted fan following. Subaru is one such automaker that has carved a niche for itself, known for its rugged all-wheel-drive vehicles, boxer engine designs, and a focus on outdoor adventure. But have you ever wondered about the story behind the company that manufactures these iconic cars? Who exactly makes Subaru vehicles?

In short, Subaru vehicles are designed and manufactured by the Japanese company Subaru Corporation, formerly known as Fuji Heavy Industries. While maintaining its independence, Subaru has developed a partnership with Toyota, which owns a minority stake in the company.

Subaru’s story begins in aircraft manufacturing, but it’s now a household name in the automotive world. How did this transformation happen? Let’s explore Subaru’s history, production facilities, and current lineup to understand its global appeal and devoted fan base.

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The Early Days: From Aircraft to Automobiles

The roots of Subaru can be traced back to 1917 when the Nakajima Aircraft Company was established in Japan. As its name suggests, the company initially focused on manufacturing aircraft, playing a pivotal role during World War II. However, in the aftermath of the war, Nakajima Aircraft shifted gears and reorganized into Fuji Sangyo Co., Ltd. in 1946.

With surplus aircraft parts on hand, Fuji Sangyo ventured into the transportation sector, launching the Fuji Rabbit motor scooter in 1946. This marked the company’s first foray into the world of consumer vehicles, setting the stage for its eventual transition into automobile manufacturing.

The Birth of Subaru: From P-1 to the Iconic 360

In 1953, several companies, including Fuji Sangyo, merged to form Fuji Heavy Industries (FHI). It was during this time that the groundwork was laid for the Subaru brand. The company’s CEO, Kenji Kita, wanted to create a new car and codenamed the project “P-1.”

As the development progressed, Kita sought a name for the upcoming vehicle. Inspired by the Pleiades star cluster, which is known as “Subaru” in Japanese, he chose this moniker for the company’s automotive division. The name “Subaru” translates to “unite” or “come together,” reflecting the merger of companies that gave birth to FHI.

In 1954, the first Subaru car, the Subaru 1500, rolled off the assembly line in Ota, Japan. However, it was the launch of the Subaru 360 in 1958 that truly put the brand on the map. This compact, rear-engine coupe became an instant success in Japan, thanks to its affordability, sturdy construction, and suitability for the country’s crowded urban areas.

Subaru’s Journey in the Automotive Industry

Following the success of the Subaru 360, the company continued to innovate and introduce new models. One of its most significant contributions to the automotive world came in 1966 with the introduction of the boxer engine layout for vehicles above 1,500 cc.

Unlike traditional engines where the cylinders are arranged in a vertical or V-shaped configuration, Subaru’s boxer engines feature horizontally opposed pistons, resembling the motion of a boxer’s fists. This design offers several advantages, including a lower center of gravity, improved balance, and better handling characteristics.

Throughout the following decades, Subaru forged partnerships with other automakers, including Nissan and General Motors (GM). During its alliance with Nissan in the late 1960s, Subaru introduced popular models like the R-2, Rex, and Leone. The partnership with GM in the late 1990s and early 2000s led to the launch of vehicles such as the Baja and Tribeca.

However, Subaru’s most significant claim to fame lies in its impressive motorsports heritage, particularly in the world of rally racing. The Subaru Impreza, with its powerful turbocharged boxer engine and exceptional all-wheel-drive capabilities, dominated the World Rally Championship, winning three consecutive manufacturers’ titles from 1995 to 1997. This success solidified Subaru’s reputation for performance and off-road prowess.

The Toyota Connection and Current Ownership

In 2005, GM divested its stake in Fuji Heavy Industries, paving the way for Toyota to acquire a minority ownership position. Initially, Toyota held an 8.7% stake in FHI, which gradually increased to 16.5% by 2008 and now stands at 20%, making Toyota the largest single shareholder in Subaru Corporation (the new name adopted by FHI in 2017).

While some Subaru enthusiasts raised concerns about the potential impact of Toyota’s involvement on the brand’s identity, the partnership has yielded several successful collaborations. One of the most notable outcomes is the jointly developed Toyota 86 and Subaru BRZ sports cars, which share a platform and boxer engine.

More recently, the two companies have joined forces to develop an all-electric vehicle platform, resulting in the launch of the Toyota bZ4X and Subaru Solterra EVs. This collaboration allows Subaru to leverage Toyota’s resources and expertise while maintaining its distinct brand identity.

Does Toyota Own Subaru?

Despite the significant ownership stake, it’s important to note that Toyota does not fully own Subaru. Subaru Corporation remains an independent company, with Toyota holding a minority 20% stake. This partnership allows for resource sharing, joint projects, and the ability to leverage each other’s strengths while preserving Subaru’s unique identity and autonomy.

Subaru Manufacturing Facilities: Where Are Subarus Made?

Unlike many of its Japanese competitors, Subaru has a relatively compact manufacturing footprint, with only two dedicated automotive production facilities worldwide. The primary plant is located in Gunma, Japan, where the company’s roots lie.

In 1989, Subaru expanded its manufacturing operations to the United States by establishing the Subaru of Indiana Automotive (SIA) plant in Lafayette, Indiana. This facility was initially a joint venture with Isuzu but became wholly owned by Subaru in 2001.

The SIA plant plays a crucial role in meeting the demand for Subaru vehicles in the North American market. Due to continued sales growth, the plant’s production capacity has been expanded to 390,000 vehicles annually, accounting for a significant portion of Subaru’s global output.

While most vehicles for the US market are produced at the SIA plant, certain models are still imported from Japan to meet global demand. This strategic approach allows Subaru to optimize its manufacturing operations and cater to diverse markets effectively.

The Current Subaru Vehicle Lineup

Today, Subaru offers a diverse range of vehicles catering to various consumer needs and preferences. Here’s a closer look at the current Subaru lineup:

Subaru Impreza: Available as a sedan or hatchback, the Impreza serves as Subaru’s entry-level model and is one of the few cars on the market that still offers a manual transmission option.
Subaru WRX/WRX STI: These high-performance variants of the Impreza pay homage to Subaru’s rally racing heritage, boasting turbocharged boxer engines and advanced all-wheel-drive systems.
Subaru BRZ: The result of the collaboration with Toyota, the BRZ is a rear-wheel-drive sports car that breaks from Subaru’s traditional all-wheel-drive norm.
Subaru Crosstrek: As a subcompact crossover, the Crosstrek combines Subaru’s signature capabilities with a compact and versatile package, appealing to urban adventurers.
Subaru Forester: One of Subaru’s best-selling models, the Forester is a compact crossover that offers ample interior space and off-road capabilities.
Subaru Outback: Often described as a crossover in station wagon clothing, the Outback blends rugged styling with the practicality of a wagon body style.
Subaru Ascent: Introduced in 2019, the Ascent is Subaru’s largest vehicle, offering three rows of seating and ample cargo space for families or outdoor enthusiasts.
Subaru Solterra: Representing Subaru’s first mass-produced all-electric vehicle, the Solterra combines the brand’s renowned all-wheel-drive capabilities with zero-emissions technology.

Are All Subarus Made in Japan?

No, not all Subaru vehicles are manufactured in Japan. While the company’s roots and primary production facility are located in Gunma, Japan, a significant portion of Subaru’s vehicles destined for the North American market are produced at the Subaru of Indiana Automotive (SIA) plant in Lafayette, Indiana, USA.

Established in 1989, the SIA plant has played a pivotal role in meeting the growing demand for Subaru vehicles in the United States and surrounding regions. With a current production capacity of 390,000 vehicles annually, the SIA facility is responsible for a substantial portion of Subaru’s global output.

However, it’s important to note that certain models in Subaru’s lineup are still imported from Japan to meet global demand and cater to specific market preferences. This strategic approach allows Subaru to optimize its manufacturing operations and maintain a diverse product offering across different regions.

Why Do People Love Subaru?

Subaru’s enduring popularity and devoted fan base can be attributed to several key factors that have become synonymous with the brand. Here are some of the reasons why people love Subaru:

Standard All-Wheel Drive Capability: With the exception of the rear-wheel-drive BRZ sports car, all Subaru vehicles come equipped with the brand’s legendary Symmetrical All-Wheel Drive system. This feature provides enhanced traction, stability, and control in various driving conditions, making Subaru vehicles ideal for those living in areas with inclement weather or seeking off-road adventures.
Distinctive Boxer Engine Design: Subaru’s signature boxer engine layout, with its horizontally opposed pistons, offers a unique combination of performance and practicality. This design results in a low center of gravity, improved balance, and better handling characteristics, contributing to the engaging driving experience that Subaru enthusiasts cherish.
Reputation for Safety and Durability: Over the years, Subaru has earned a reputation for building safe and durable vehicles. The company’s commitment to safety features and robust engineering has earned numerous accolades from safety organizations, instilling confidence in Subaru owners.
Rally Racing Heritage and Performance: Subaru’s success in the World Rally Championship has cemented its status as a performance brand. The Impreza WRX and WRX STI models, in particular, are beloved by driving enthusiasts for their powerful turbocharged boxer engines and precision handling.
Go-Anywhere Abilities for Outdoor Enthusiasts: With their all-wheel-drive capabilities, rugged design, and ample cargo space, Subaru vehicles have become a popular choice among outdoor enthusiasts, adventurers, and those with active lifestyles. The brand’s marketing has effectively captured this spirit, resonating with consumers who seek vehicles that can tackle challenging terrain and support their passions.

Let’s Complete

Subaru’s story is a fascinating journey that began with aircraft manufacturing and evolved into a respected automotive brand known for its unique engineering, performance, and adventure-ready capabilities. While maintaining its independence, Subaru’s partnership with Toyota has enabled resource sharing and collaborative projects, ensuring the brand stays competitive in an ever-evolving automotive landscape.

From the iconic Impreza and Outback to the all-new Solterra EV, Subaru continues to captivate enthusiasts with its signature blend of all-wheel-drive prowess, boxer engine design, and a commitment to safety and durability. Whether navigating city streets or embarking on off-road adventures, Subaru vehicles have earned a loyal following among those seeking a driving experience that combines practicality with a touch of excitement and exploration.