Subaru to boost Lafayette plant output by 30% by fiscal 2016

Article by Anita Panait, on January 4, 2013

Subaru, a car making unit Fuji Heavy Industries Ltd., will increase production capacity at its Lafayette assembly plant in Indiana by around 30 percent by fiscal 2016, according to a report by the Nikkei business daily. The carmaker will invest around JPY20 billion ($230 million) in Subaru of Indiana Automotive Inc. to implement the capacity hike.

According to the Nikkei, Fuji Heavy plans to increase its production capacity by 30,000 vehicles by 2014. Currently, the Lafayette plant can build 170,000 units of Subaru models as well as 100,000 Camry cars for Toyota Motor Corp. However, the US spokesman for Subaru declined to confirm the report.

Fuji Heavy sold almost 330,000 vehicles in the United States in 2012, but had to import half of them from Japan. The strong yen has diluted the profitability of several models built in Japan and had exported, prompting Japanese carmakers Nissan Motor Co., Mazda Motor Corp. and others to start producing vehicles overseas.

According to the Nikkei, Fuji Heavy’s decision to hike its production capacity in the US was prompted by a forecasted increase in North American demand for its Subaru Impreza model. North America accounts for nearly half of Fuji Heavy's total sales, the business daily said. Fuji Heavy said in 2011 that it planned to hike global sales to 1 million vehicles in 10 years, according to the Nikkei.

The newspaper disclosed that currently, Fuji Heavy’s two major production plants in Indiana and in the Gunma Prefecture in Japan has the capacity to produce around 750,000 vehicles annually. Fuji Heavy has mulled constructing a new plant in Mexico, but eventually decided that increasing the capacity at the Lafayette plant was the cheaper option, Nikkei added.

Topics: subaru

If you liked the article, share on:

Comments

Recommended

Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
You guys are probably aware of the collaboration between Mercedes-Benz and Renault-Nissan. Knowing this, you would expect that both companies will come up with something impressive. Sources say that the...
by - May 24, 2017
Amongst all sports cars on the planet, which one is the world’s best-selling model? Would you have guessed that it is the Ford Mustang? According to IHS Markit’s global automotive...
by - May 24, 2017
It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 2017
If you’re selling some of the most expensive and most exclusive cars in the world, perhaps it would be a great idea to commission an ultra-rare work from the same...
by - May 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries