Large BEV crossovers may qualify for $7,500 federal tax credit for purchases.
The strategy follows the earlier collaboration between the two Japanese automakers on launching the Toyota bZ4X and Subaru Solterra (pictured) compact crossovers in 2022.
Like the bZ5X, it is expected to receive its batteries from the plant that Toyota has under construction in Liberty, N.C., which is scheduled to begin production in 2025. The final assembly location and battery sourcing may allow both vehicles to qualify for the full $7,500 federal tax credit for purchases under the Inflation Reduction Act, which neither the bZ4X or Solterra do.
With those smaller crossovers, Toyota led on manufacturing while Subaru contributed its off-road prowess. The joint development and production strategy gives Subaru a larger EV while allowing it to continue to run at top speed its U.S. assembly plant in Lafayette, Ind., where the smaller Japanese automaker builds the ICE-powered Ascent, Outback and Crosstrek crossovers and Legacy sedan.
A spokesman for Subaru of America declined to comment. Parent company Subaru Corp. is holding a midterm meeting with analysts and press in attendance in Japan on Aug. 2, though whether the vehicle will be announced is unknown. A spokesman for Toyota Motor North America also declined to comment.
Toyota owns about 20 percent of Subaru, which holds a 0.3 percent stake in Toyota.
Retooling Toyota’s 9-million-square-foot Georgetown assembly plant for the two EVs is part of a $461 million investment announced in 2021. Workers at the complex make the Camry, Camry Hybrid, RAV4 Hybrid and Lexus ES, as well as four- and six-cylinder engines. Production of hydrogen fuel cell drivetrains for heavy-duty trucks is set to begin in December. Production of the ES will be phased out from Georgetown in 2025; the luxury sedan will continue to be built in Japan.
Toyota has announced investments of $5.9 billion in its nascent North Carolina battery plant, where it will operate six battery production lines, four for hybrid vehicles and two for electric vehicles.
Toyota plans to release 10 EV models globally by 2026 and has said it would invest more than $37 billion in EV development and production through decade’s end.
