Subaru Restructures Board Amid Sharp Profit Drop and Dividend Dispute

Subaru plans to seek shareholder approval at its annual general meeting this month for a board restructuring proposal, which includes appointing six new outside directors and establishing an audit and supervisory committee—a move aligned with Japan's corporate governance reforms. For fiscal year 2026, the company reported an operating profit of JPY 66.2 billion, down 82% year-over-year, with JPY 216.6 billion in losses attributed to U.S. tariffs; it posted an operating loss of JPY 36.4 billion in the December 2025 quarter. Both vehicle production and sales declined in fiscal year 2025 compared to the previous year. Additionally, the company has been accused of using governance reform measures to obscure concerns over its dividend payout ratio, which stands at a high 92%.