Subaru's marketing costs have surged as it struggles to sell its electric vehicles.
In the last quarter, the automaker spent $9,650 for each Solterra sold, yet sales remain sluggish.
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In July, only 1,574 units of the Solterra, Uncharted, and Trailseeker found new homes.
That figure barely surpasses the WRX, which sold 1,438 units in the same month.
Heavy Incentives, Minimal Impact
Subaru ramped up incentive spending during the April-June period, and the financial impact was significant.
These expenses cut ¥24.9 billion ($153.8 million) from global earnings, accounting for most of the decline.
Marketing costs in the US jumped 40 percent in the second quarter, averaging $2,698 per vehicle.
Even with the increase, Subaru's average incentive spending stayed below the industry average of $3,479 per vehicle.
However, its 40 percent year-over-year jump dwarfed the wider market's 4.4 percent rise.
According to Motor Intelligence, Subaru spent an average of $9,155 per Uncharted, $9,650 per Solterra, and $8,982 per Trailseeker last quarter.
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For comparison, average incentives on the Outback ran $3,036. None of the three electric models appears capable of meaningfully expanding Subaru's share of the EV market.
The heavy spending follows the repeal of federal EV tax credits last year, which stripped away support that had propped up demand.
Sales Data Tells a Bleak Story
Through the first seven months of this year, Subaru delivered 5,275 Solterras, down 34.6 percent from 8,063 in the same period last year.
In July, Solterra sales tumbled 91.2 percent to just 138 units.
The Trailseeker and Uncharted are newer additions, so year-over-year comparisons aren't possible.
Still, they're not setting records: year-to-date, 3,513 Trailseekers and 2,850 Uncharted models have been sold.
In July, 359 Uncharted and 1,077 Trailseekers were delivered. Combined with the Solterra, that's 1,574 EVs, barely ahead of the WRX's 1,438.
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As spending climbed, Subaru's operating profit fell from $472 million in the fiscal quarter ended June 30 last year to $263.2 million in the same period this year.
