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Subaru PHEV possible next year, pure EV in 2021

Despite what its larger competitors are doing, Subaru has avoided the draw to create its own electric vehicle. Tighter emissions regulations around the globe, though, have the company reconsidering its options. The company is pouring a record amount of money into research and development, according to a report from Bloomberg, and that includes EV technology. Also, Subaru could introduce a plug-in hybrid as early as next year, and an all-electric vehicle by 2021. Subaru CEO Yasuyuki Yoshinaga tells Bloomberg that the company doesn't need a dedicated platform for battery-powered cars, and will likely put plugs into existing models. This way, the automaker doesn't have to partner with another company beyond finding a supplier for the motor and battery, and can extract the full value out of its current nameplates. A previous report suggests that Subaru would electrify the Outback or the Forester, but Yoshinaga doesn't confirm this in his interview with Bloomberg. Instead he uses a model that recently ditched its hybrid version in a hypothetical example: "If there's already an attractive Subaru model, for example the XV crossover, and if a customer in Beijing wants one but is only allowed to buy an electric vehicle, if there's no electric version then he can't buy it. Providing the choice of an EV means the customer can still desire the same Subaru." As for sourcing the battery, Yoshinaga says that a decision would have to come in about a year, and Panasonic and Samsung are possibilities. In addition to EVs, Subaru will use some of its $1.2 billion in funds set aside for R&D for the year ending in March, 2018 on driver assist technology, autonomous driving, and connected vehicles. Related Video:

Subaru testing a BRZ with STI badging and a big wing

Pretty much since the introduction of the Subaru BRZ and its identical Toyota- (or Scion-) badged twin, enthusiasts have been pining for a more powerful version, preferably with an STI badge and all the performance tweaks that come with it. So far though, Subaru has only shown a turbocharged concept that's now a couple of years old, as well as a Japan-only BRZ tS by STI, which only had suspension and handling upgrades. But now, spy photos show Subaru is working on another STI-badged BRZ, and it's testing in the US. Our spy photographer caught this prototype near Subaru's office in Ann Arbor, Michigan, and it's wearing Michigan manufacturer plates. And, although Subaru taped over it, we can still clearly make out the STI badges on front and back. Despite the STI badges, we don't see any evidence that this BRZ has any kind of power adder like a turbocharger or supercharger. The front vents appear to be the same size as the current model, and there's no hood scoop to feed a possible top-mounted intercooler. The exhaust also looks roughly the same as the naturally aspirated BRZ. There are some other upgrades, though. Most noticeable is the huge rear wing, which has similar stanchions to the BRZ tS. In addition to the wing, the body is accented with the STI lip spoiler, side skirts, and rear bumper extensions available on the current BRZ. Behind the multi-spoke wheels are Brembo brakes at each corner. Based on these photos, we'd say this STI-badged BRZ is probably a track package/trim that improves the car's already excellent handling. We of course hope that there may be some horsepower upgrades under the hood. But a lack of visual changes for forced induction, and Subaru's history of reluctance regarding more powerful BRZs, has us erring on the slow side. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Will more efficient tech mean higher prices for Subaru?

If the latest ruling by the California Air Resources Board holds, then Subaru at least must build a plug-in hybrid in the coming years to comply with the Golden State's regulations. Fuel economy looks to improve across the board for the brand, though, thanks to $780 million going into the development of cleaner powertrains for this fiscal year alone. However, buyers might have to pay more for a Subie in the future after this boost in green spending. "Related costs are going up more than expected, bringing the profit margin downward," Fuji Heavy Industries President Yasuyuki Yoshinaga said to the Nihon Keizai newspaper in Japan, according to Automotive News. "We are a small company. We do not benefit as much from economy of scale as bigger companies, so we will have to make up for the increased costs by raising our brand value." At the moment, Subaru's electrified lineup in the US comprises just the XV Crosstrek Hybrid, but the company is reportedly planning to add more. Plus, Subie also wants to make its internal combustion engines more efficient. According to Automotive News, all of the brand's mills are getting direct injection by 2016, and cylinder deactivation and lean combustion cycles are on track for 2020. Earlier rumors also suggested that the automaker might bring the turbocharged four-cylinder boxer to more products, as well. While these more efficient models might cost more, Subaru must carefully maintain the balancing act of introducing the technology and keeping sales growing. As of May 2015, the brand had 42 straight months of year-over-year growth in the US and had record sales in the country last year. The company has already decided to significantly boost production capacity at its Indiana factory in hopes of keeping the good times rolling.