Subaru CEO Meeting: Development Lead Times and Cost Reductions

Goldman Sachs maintains a Buy rating on Subaru following a CEO meeting that emphasized aggressive ¥300k per-unit cost cuts and the goal of halving development times.

Key Takeaways

• 1.Subaru aims to reduce per-vehicle costs by ¥300,000 via a next-generation platform expected in 2027-2028, potentially leading to over ¥200bn in operating profit uplift.
• 2.The company targets halving its traditional development lead time through in-house BEV development and digital R&D to match Chinese manufacturers' speed.
• 3.Current weakness in US sales momentum is viewed as temporary, attributed to product transitions and specific BEV launch constraints.

Table of Contents

• Investment Thesis - Subaru Corp.
• Price Target Risks and Methodology - Subaru Corp.
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures