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    Automaker Won’t Build Electric Vehicles in US Because Workers Make More Flipping Burgers at McDonald’s

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    Subaru declared on Wednesday that it will not be moving its EV production to the U.S. owing to the inflation that America is experiencing as automakers start to transition toward boosting electric vehicle production.

    Consumer Reports claims that Subaru just recently unveiled its first electric vehicle (EV) earlier in 2022.

    But it doesn’t appear that the EV will be produced in the United States any time soon; it has remained in Japan.

    According to figures from the Bureau of Labor Statistics, salaries have increased in the United States even though the overall inflation rate was 8.2 percent in September.

    According to the BLS, worker salaries increased by 1.2 percent from June to September.

    Even though the firm currently has a production facility in Lafayette, Indiana, Fox News stated that Subaru made the decision to keep its EV production in Japan due to higher pay rates rather than move it there.

    Tomomi Nakamura, CEO of Subaru, particularly mentioned that Subaru would probably not be able to compete to attract enough workers to make an EV production plant in the U.S. feasible due to high wages at companies like McDonald’s.

    According to Nakamura, who was quoted by Auto News, “In Indiana, part-time workers at McDonald’s earn $20 to $25 per hour, which is in competition with what temporary workers make at our plant.”

    According to Fox, Subaru presently makes the Outback, Legacy, Impreza, and Ascent at its Indiana manufacturing facility.

    However, Nakamura cautioned that bringing EV production to the United States would necessitate a substantial investment from the automaker in order to construct the required factory, as Fox reported.

    “If we were to build a new plant, it would be very difficult to hire new people for that. Labor costs are rising now. It is quite challenging for us to secure workers for our Indiana plant, including those of suppliers,” according to Nakamura.

    More on this story via The Western Journal:

    Subaru is manufacturing its current EV model, the Solterra, in collaboration with Toyota’s BZ4X, which is a very similar model, Hot Cars reported.

    The cars are even built in the same plant, Auto News reported.

    Thus, Subaru is under no immediate pressure to have their manufacturing in the states.

    Even though the U.S. offers new federal tax credits for vehicles built in the states (these new regulations are a result of the Inflation Reduction Act), Nakamura still noted that Subaru just did not see the overwhelming benefit to building in the U.S. and competing for enough workers when wages are inflated, Fox reported. CONTINUE READING…

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