Fuji Heavy drops plan to build the Subaru XV Crosstrek in the United States

Article by Christian A., on December 29, 2014

Fuji Heavy Industries has dropped a plan to transfer output of the new XV Crosstrek to its Lafayette site in Indiana and will instead produce the SUV in Gunma, Japan, a person privy with the matter told Reuters.

The source disclosed that Fuji Heavy decided to make build the Subaru XV Crosstrek in Japan due to capacity limitations in Indiana as well as the relatively high price of the vehicle, which means that a Japan output would be better for the company.

Fuji Heavy had initially intended to produce around 65,000 XV Crosstrek annually in the United States, where it posted a 25-percent jump in sales for a record volume in the first 11 months of 2014.

The decision of Fuji Heavy to build the Crosstrek in Japan mirrors similar decision by its local rivals to transfer some output back home due to the weaker yen, which makes exports more profitable.

Since mid-October, the Japanese yen has seen its value dropped about 11 percent against the US dollar, trading currently above JPY120 per dollar. The source told Reuters that Fuji Heavy intends to start production of the Crosstrek in Japan in April 2017.

The Indiana site is bound to have some free capacity after Toyota Motor Corp. disclosed late last year that it would terminate a deal with Fuji Heavy for making Camry sedans at the plant.

Sources privy with Toyota said the carmaker mulls shifting production of some new Camry sedan from its Kentucky site to Japan. The chief executive of Japanese carmaker Nissan Motor Co., Carlos Ghosn, also recently a plan to shift back production of the Rogue SUV to Japan for export to the US.

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 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