Subaru will not be able to build electric cars in America due to high salaries at McDonald’s

It’s all the fault of the American “Inflation Reduction Act”, which offers tax incentives when locating the production of electric vehicles in the United States.

In its report, Subaru said it would most likely not invest in electric vehicle production in the US. As the reason, the company’s CEO Tomomi Nakamura cites a significant increase in costs when the assembly is moved to North America. At the same time, Nakamura refers to the salary at the local McDonald’s, where workers earn from 20 to 25 dollars per hour (1250-1550 rubles), which is about the same as a temporary employee of a Subaru plant in Japan receives. The company’s management believes that if Subaru still decided on an investment project, it would be difficult for her to find employees who would work for the money that she can offer.

Therefore, Subaru’s electric vehicles will not be able to claim tax credits under the Inflation Reduction Act, which could put it at a disadvantage compared to its competitors. On the other hand, there are not so many of them in the company’s lineup. Subaru’s only electric car, the Solterra, has recently started production in Japan and is now entering dealerships.

But one way or another, the company’s statement contradicts the opinion of other automakers, which are increasingly investing in North American production. For example, Japan’s Toyota and Honda have large electric vehicle programs in the US. And this despite the fact that Subaru plans to completely switch to electric vehicles by the mid-2030s, and North America is one of its largest markets for sales. So the decision seems to be not fully thought out and may change over time.