Subaru Exits Engine Market to Focus on Automotive Business

While Subaru is renowned for its signature horizontally opposed engines and symmetrical all-wheel-drive systems in automobiles, its contributions to industrial power solutions have been equally noteworthy. However, an era has now drawn to a close. The Japanese automaker recently confirmed it completely ceased production and sales of general-purpose engines and generators by September 2017, marking a strategic shift to concentrate resources on its core automotive business.

A Legacy of Industrial Power

Subaru's industrial machinery division boasted a storied history dating back to 1951, when predecessor Omiya Fuji Industries began manufacturing the 540cc "M6-type" engine. Over six decades, Subaru's engines earned global recognition for reliability and durability, powering construction equipment, agricultural machinery, snowmobiles, and off-road vehicles. Beyond general-purpose engines, the company produced high-performance vehicle-mounted engines, generators, and water pumps that supported infrastructure projects worldwide.

Strategic Realignment

This operational shift stems from Subaru's long-term sustainability strategy. In a November 2016 statement, the company explicitly outlined plans to reallocate resources toward strengthening automotive competitiveness. By consolidating expertise, Subaru aims to reinforce its market position and enhance brand value in an increasingly competitive automotive landscape.

The decision affects Subaru's Industrial Machinery Division, which handled manufacturing, sales, and maintenance of engines and engine-mounted equipment for agricultural, forestry, and construction applications. Notably, certain vehicle-mounted engine production will continue under existing supply contracts until their expiration.

Continued Customer Support

While discontinuing production, Subaru maintains its service commitment through affiliate company Industrial Machine Co., Ltd. Based in Kitamoto, Saitama Prefecture, the company will provide ongoing maintenance, repairs, and parts supply for existing industrial equipment. This transition ensures uninterrupted support for current users of Subaru's industrial power products.

Industry-Wide Consolidation Trend

Subaru's move reflects broader automotive industry trends as manufacturers streamline operations amid technological disruption and market pressures. By shedding non-core assets, the company can intensify focus on research, development, and production efficiency—critical factors for maintaining competitiveness in evolving mobility markets.

This strategic pivot signals Subaru's commitment to strengthening automotive brand equity through enhanced product quality and service excellence, while preserving legacy support for its industrial engine customers through established channels.