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Miami Herald
7 hours ago
- Automotive
- Miami Herald
Subaru Is Making a Huge Bet on the Forester to Navigate Trump Tariffs
Japanese automaker Subaru is resting on its bestseller, the Forester crossover SUV, to be its north star as it navigates the rough seas caused by the Trump administration's heavy automotive tariffs. According to a new report by Nikkei Asia, Subaru hopes the new Forester SUV will help cushion the blow from steep tariffs and keep its footing in its most important market. At the company's annual shareholder meeting in Tokyo this week, Subaru President Atsushi Osaki made it clear that Subaru will stay committed to its stateside customers. "We'll overcome this by maintaining the U.S. as our main market and balancing it with Japan and Canada," Subaru President Atsushi Osaki said at the automaker's annual shareholder meeting on June 25. To say that Subaru depends on the United States auto market to survive would be an understatement. According to its figures, more than 70% of Subaru's global sales are in the United States-far more than its Japanese automaking rivals like Honda and Toyota. In fiscal 2024, Subaru sold 662,000 vehicles in the U.S., or 71% of its total global sales of 936,000. Despite this, Subaru's manufacturing situation leaves it vulnerable to Trump's tariffs. Roughly half of Subarus sold in the States are Japanese imports, which means they're now subject to the 25% tariffs imposed by the Trump administration earlier this year. Subaru estimates those tariffs could cost the company $2.5 billion if they do not work proactively, making its $2.79 billion operating profit from the 2024-2025 fiscal year useless. However, the atmosphere around the shareholder meeting suggested that Subaru would heavily rely on the Forester as a savior for the marque. The latest version of the brand's most popular SUV first went on sale in the U.S. in 2024 with a purely gasoline version, followed by a Toyota-developed hybrid model released earlier this year. Demand is already strong. According to figures from Subaru of America, 15,434 Foresters moved off dealer lots and into the driveways of new owners in May 2025. As of last month, 84,629 Foresters had been sold since the start of this year, a 3.5% year-over-year increase. In addition, Osaki noted that strong Forester sales in Japan could reduce the impact of U.S. tariffs. "The new Forester is performing extremely well," Osaki said. He also added that the hybrid version was selling beyond its expectations. To help further cushion its tariff impact, Subaru plans to ramp up production in its U.S. factory in Indiana, its only overseas plant that makes finished cars. Starting this fall, Subaru will invest 40 billion yen (~$277 million) to begin producing the new Forester at the plant. The factory currently churns out around 340,000 to 350,000 vehicles annually, but Osaki said it could push past 400,000 with the new investment. Still, shifting more production away from Japan caused concern among shareholders. Subaru's domestic manufacturing operations are centered in Gunma prefecture, where many of its suppliers are also based. Osaki acknowledged the dilemma, noting that boosting U.S. output is impossible without its suppliers. "It's true that it would improve our ability to deal with the tariffs, but it would be would be difficult without cooperation from all of our suppliers," Osaki said in response to shareholder questions. "We need to think about this comprehensively." Subaru itself is in a precarious position. Last month, it informed dealers that price increases would add an additional $750 and $2,055 to the cost of vehicles, depending on the model and trim. Specifically, Forester buyers got a price hike between $1,075 and $1,600, depending on trim, while Crosstrek and Impreza buyers got hit by a $750 price bump. At the time, Subaru did not explicitly cite the tariffs as the reason behind the price bumps but noted that they are a response to "current market conditions." "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," it said. Fast-forward to now, it seems that Subaru is proactive in recognizing what is working and what is not, though it is tough to tell what the tariff picture will be. According to a new report by Bloomberg, Japan's chief trade negotiator Ryosei Akazawa is on his way to Washington, D.C., to hold his seventh round of trade negotiations with his American counterparts. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Bloomberg
12 hours ago
- Business
- Bloomberg
TotalEnergies Says It Can Get Mozambique LNG Running by 2029
TotalEnergies SE and its partners can still start producing liquefied natural gas in Mozambique from 2029, as they are poised to resume work at a $20 billion project thanks to improved security, Chief Executive Officer Patrick Pouyanne said in an interview with Nikkei Asia. 'Production will be by 2029,' the CEO of the French energy giant said in an interview with the Japanese media dated June 25. While on-site work was halted after insurgents attacked the region four years ago, 'people continued with the engineering,' so 'we should be able to meet' the 2029 target.
Auto Blog
13 hours ago
- Automotive
- Auto Blog
Subaru Is Making a Huge Bet on the Forester to Navigate Trump Tariffs
Subaru is not backing down Japanese automaker Subaru is resting on its bestseller, the Forester crossover SUV, to be its north star as it navigates the rough seas caused by the Trump administration's heavy automotive tariffs. According to a new report by Nikkei Asia, Subaru hopes the new Forester SUV will help cushion the blow from steep tariffs and keep its footing in its most important market. At the company's annual shareholder meeting in Tokyo this week, Subaru President Atsushi Osaki made it clear that Subaru will stay committed to its stateside customers. 0:01 / 0:09 Another Chinese automaker is taking the fight to Tesla Watch More 'We'll overcome this by maintaining the U.S. as our main market and balancing it with Japan and Canada,' Subaru President Atsushi Osaki said at the automaker's annual shareholder meeting on June 25. 2025 Subaru Forester Hybrid — Source: Getty Images Japanese cars, American buyers To say that Subaru depends on the United States auto market to survive would be an understatement. According to its figures, more than 70% of Subaru's global sales are in the United States—far more than its Japanese automaking rivals like Honda and Toyota. In fiscal 2024, Subaru sold 662,000 vehicles in the U.S., or 71% of its total global sales of 936,000. Despite this, Subaru's manufacturing situation leaves it vulnerable to Trump's tariffs. Roughly half of Subarus sold in the States are Japanese imports, which means they're now subject to the 25% tariffs imposed by the Trump administration earlier this year. Subaru estimates those tariffs could cost the company $2.5 billion if they do not work proactively, making its $2.79 billion operating profit from the 2024-2025 fiscal year useless. Workers assemble vehicles on the production line at the Subaru Corp. Gunma Yajima Plant in Ota, Gunma Prefecture, Japan. — Source: Getty Images However, the atmosphere around the shareholder meeting suggested that Subaru would heavily rely on the Forester as a savior for the marque. The latest version of the brand's most popular SUV first went on sale in the U.S. in 2024 with a purely gasoline version, followed by a Toyota-developed hybrid model released earlier this year. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Demand is already strong. According to figures from Subaru of America, 15,434 Foresters moved off dealer lots and into the driveways of new owners in May 2025. As of last month, 84,629 Foresters had been sold since the start of this year, a 3.5% year-over-year increase. In addition, Osaki noted that strong Forester sales in Japan could reduce the impact of U.S. tariffs. 'The new Forester is performing extremely well,' Osaki said. He also added that the hybrid version was selling beyond its expectations. The Subaru of Indiana Automotive Inc. (SIA) assembly plant stands in Lafayette, Indiana. — Source: Ty Wright/Bloomberg via Getty Images To help further cushion its tariff impact, Subaru plans to ramp up production in its U.S. factory in Indiana, its only overseas plant that makes finished cars. Starting this fall, Subaru will invest 40 billion yen (~$277 million) to begin producing the new Forester at the plant. The factory currently churns out around 340,000 to 350,000 vehicles annually, but Osaki said it could push past 400,000 with the new investment. Still, shifting more production away from Japan caused concern among shareholders. Subaru's domestic manufacturing operations are centered in Gunma prefecture, where many of its suppliers are also based. Osaki acknowledged the dilemma, noting that boosting U.S. output is impossible without its suppliers. 'It's true that it would improve our ability to deal with the tariffs, but it would be would be difficult without cooperation from all of our suppliers,' Osaki said in response to shareholder questions. 'We need to think about this comprehensively.' Final thoughts Subaru itself is in a precarious position. Last month, it informed dealers that price increases would add an additional $750 and $2,055 to the cost of vehicles, depending on the model and trim. Specifically, Forester buyers got a price hike between $1,075 and $1,600, depending on trim, while Crosstrek and Impreza buyers got hit by a $750 price bump. At the time, Subaru did not explicitly cite the tariffs as the reason behind the price bumps but noted that they are a response to 'current market conditions.' '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,' it said. Fast-forward to now, it seems that Subaru is proactive in recognizing what is working and what is not, though it is tough to tell what the tariff picture will be. According to a new report by Bloomberg, Japan's chief trade negotiator Ryosei Akazawa is on his way to Washington, D.C., to hold his seventh round of trade negotiations with his American counterparts. About the Author James Ochoa View Profile
Nikkei Asia
15 hours ago
- Business
- Nikkei Asia
Trump envisions China trip with dozens of CEOs
U.S. President Donald Trump poses with business leaders from American companies in Riyadh during a trip to Saudi Arabia on May 13. © Reuters KEN MORIYASU WASHINGTON -- U.S. officials are drawing up plans for President Donald Trump to visit China later this year with a delegation of dozens of CEOs, Nikkei Asia has learned. Such a visit is expected to resemble the president's trip to the Middle East in May. More than 30 business leaders accompanied him to Saudi Arabia, producing over $2 trillion in deals.
Nikkei Asia
a day ago
- Business
- Nikkei Asia
Letter from Nikkei Asia's editor: Israel-Iran war highlights Asia's vulnerability
Hello, everyone. I'm writing this week's newsletter from Hong Kong, where I attended the annual awards ceremony hosted by the Society of Publishers in Asia last night. I'm proud to share that our series, "China's tech industry fights back," received the award for excellence in technology reporting, and our in-depth analysis of last year's runway collision at Japan's Haneda Airport received an honorable mention for journalistic innovation. We are incredibly honored to have won in the global category -- competing alongside major international media outlets -- for the third consecutive year. A heartfelt thank you to our readers for your continued support. As readers of this newsletter are aware, Hong Kong is one of the key maritime hubs along Asia's sea lanes. In times of international crisis, strategic points along these routes -- such as this beautiful city, with its skyscraper-lined waterfront -- draw global attention. This week, one of the most vital of those routes, the Strait of Hormuz in the Middle East, has fallen into a critical situation. Following U.S. strikes on Iran's nuclear facilities, Tehran hinted at the possibility of closing the strait. In response, Nikkei Asia quickly assessed the potential fallout. According to our analysis, Asia would be the region most severely impacted if the strait were to be shut down. Roughly 80% of the crude oil transported through the Strait of Hormuz -- which narrows to just over 30 kilometers at its tightest point -- is destined for Asia. Major economies like China and India are expected to face particularly severe consequences in the event of a disruption. Crude oil prices surged following the U.S. strike on Iran's nuclear facilities. However, just a few days later, President Donald Trump unilaterally declared a ceasefire between Israel and Iran via Truth Social. His statement sent oil prices tumbling and Asian stocks soaring. A shaky ceasefire has since taken hold. Whether this marks the end of the latest crisis remains uncertain, but one thing is clear: Any conflict that spreads globally will have a profound impact on Asia. As I've emphasized many times in this newsletter, Nikkei Asia is committed to analyzing and explaining global events through an Asian lens. For the latest updates and in-depth coverage, please visit the Nikkei Asia website and app. Webinar: Trading Asia Live Lastly from me, Nikkei Asia will host a free webinar just a day before Trump's 90-day pause on tariffs ends. Here are the details for "Trading Asia Live: What to expect from markets when the Trump tariffs kick in." Date and Time: Tuesday, July 8 New Delhi | 9:30 am - 10:30 amBangkok | 11:00 am - 12:00 pmSingapore | 12:00 pm - 1:00 pmTokyo | 1:00 pm - 2:00 pm Our market editor and reporters will discuss how experts are calibrating the expected economic impacts of Trump's tariffs and how investors and traders plan to navigate the renewed tariff war. Sign up here, where you can also submit questions. My suggested reads 1. Singapore has begun a bold expansion of its main gateway, Changi Airport, to stay competitive as a regional economic hub. Terminal 5, scheduled to open in the mid-2030s, is projected to boost total airport throughput by 50% to over 140 million passengers annually. Read our comprehensive report -- packed with dynamic graphics and images -- to learn more about this ambitious project. 2. Japan is attempting to get back into the cutting-edge chipmaking game, but one part of the country's supply chain has never lost its edge: little-known companies with a near total control of key components or materials. A prime example: Nitto Boseki, the textile maker turned AI enabler. 3. Japan may seem far removed from America's fentanyl crisis, but a Nikkei investigation has revealed evidence of a hidden connection to the flow of these powerful synthetic opioids. The findings raise questions about Japan's role in a shadowy trade that has ratcheted up tensions between the U.S. and China. 4. South Korean mega boy band BTS is set to reunite now that all members have completed their military service, sparking hopes of a K-pop revival amid falling album sales and intensifying global competition. Our photo- and graphics-rich deep dive explores what their comeback could mean for both the group and the future of K-pop. 5. In recent years, English education in Japan has accelerated, driven largely by pressure from the business community to cultivate globally active talent. However, with rapid advancements in AI, a new question has emerged: Is learning English even necessary anymore? NIKKEI Film explores the future of English education in the age of AI. Through the lens This week's top photo pick : Cambodians carrying their belongings prepare to cross the border to Cambodia during a temporary opening that enabled stranded Thais to come the other way. The Ban Khlong Luk border checkpoint in Aranyaprathet district, Sa Kaeo province, and other crossing points were closed by the Thai military following a border spat. This was presented by the Thai army as part of a broader crackdown on multiple transnational scam centers operating along the border. (Photo by Rungroj Yongrait/EPA/Jiji) Check out more of our photo coverage here Wishing you a wonderful weekend! Akito Tanaka Sign up for the weekly Editor-in-chief's picks newsletter here. Follow us on LinkedIn and Instagram
