Subaru plans to boost production capacity at its Indiana assembly plant

Article by Christian Andrei, on August 29, 2010

For this year, Subaru has plans to increase production capacity at its Indiana assembly plant by 40% in order to meet the demand for the Outback wagon and Legacy sedan. Spokesman Masashi Uemura said that the move coincides with Fuji Heavy Industries announcement of its target US sales of 230,000 vehicles for 2010.

Fuji, the maker of the Subaru brand, said that the ramp-up will take place at the plant in Lafayette, Ind. Subaru's sales target stands for a 6% increase over the 216,652 vehicles sold in 2009. Uemura said that Subaru wants to increase the capacity of its Indiana plant from 100,000 vehicles a year to 140,000.

However, Uemura didn´t indicate if Subaru would add a line, raise the speed of production or take capacity that currently goes to Toyota.

The plant has a separate line with capacity of 100,000 units that makes the Toyota Camry.

In the first quarter of the year, Outback and Legacy sales more than doubled, with the Outback reaching 19,275 and the Legacy 8,550. At the Indiana plant, production more than doubled, when compared to last year's output.

To cope with the demand, Subaru has already been increasing the pace of production.

Japan's Nikkan Kogyo business daily said that the investment for the forthcoming capacity increase will amount to tens of millions of dollars.

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