As automakers begin to expand electric vehicle production, Subaru announced Wednesday that it will move its electric vehicle production to the U. S. The U. S. economy is facing because of the inflation the U. S. is facing.
Subaru launched its first electric vehicle before 2022, according to Consumer Reports.
But electric vehicle production has remained in Japan and doesn’t look like it’s going to make its way to the U. S. In the U. S. in the short term.
With headline inflation at 8. 2% in September, wages also rose in the United States, according to data from the Bureau of Labor Statistics.
From June to September, workers’ wages rose 1. 2 percent, the BLS reported.
So, with higher wages, Subaru has to keep its EV production in Japan, rather than moving it to the United States, even though the company already has a production plant in Lafayette, Indiana. Array reported Fox News.
Subaru CEO Tomomi Nakamura, in particular, noted that higher salaries at places like McDonald’s mean Subaru probably wouldn’t compete for enough staff for an electric vehicle production plant in the U. S. to go down. It’s worth it in the U. S.
“In Indiana, part-time McDonald’s earn between $20 and $25 an hour, which is in line with what transience earns at our factory,” Nakamura said, Auto News reported.
Subaru’s Indiana facility lately produces Outback, Legacy, Impreza and Ascent, Fox reported.
But Nakamura noted that moving electric vehicle production to the U. S. is not a matter of being able to move electric vehicle production. The U. S. would require massive investment from the automaker to build the plant, Fox reported.
“If we had to build a new plant, it would be very difficult to hire new people for it. Labor prices are now rising. It’s complicated for us to locate personnel for our Indiana plant, adding those from suppliers,” Nakamura said. .
Subaru is making its existing electric vehicle model, the Solterra, in collaboration with Toyota’s BZ4X, which is a very model, Hot Cars reported.
They are even built in the same factory, Auto News reported.
Therefore, Subaru is under immediate pressure to manufacture it in the United States.
Even though staff when salaries are inflated, Fox reported.
“It’s very complicated for us to respond. There are a number of requirements,” Nakamura said, according to Fox. “We are struggling to perceive how the IRA will bring benefits to our clients. “
The Solterra offers promising features for car buyers, being a more trekking-oriented electric vehicle, according to Consumer Reports.
However, despite initial good fortune with consumers, Solterra encountered production problems. Some models had to be recalled in July due to bolt problems that caused the tires to loosen, Torque News reported.
But even with those production issues and hurdles, Nakamura’s comments imply that Subaru is determined not to move anything to the U. S. The U. S. will be in the foreseeable future.
This article made the impression in The Western Journal.
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