Automotive News - May 16, 2012
Subaru said it will expand its Lafayette, Ind., plant to boost production of the Outback crossover and Legacy sedan.
The $75 million, 52,000-square-foot expansion of the plant's body assembly section is slated to start this summer, increasing the plant's capacity to 180,000 vehicles during regular shifts, according to Subaru. The current limit is 156,000 units on straight time.
The expansion also is expected to create 100 full-time jobs, according to Subaru, a unit of Fuji Heavy Industries Ltd. of Japan.
The Lafayette plant employs 3,600, with more than 600 jobs added since 2009, Subaru said.
In 2011, more than half of Subaru's vehicles sold in North America were assembled at the Indiana plant, which opened in 1987.
The plant made 170,629 vehicles in the 2012 fiscal year, but overtime shifts were needed to reach that number.
Another reason why Subaru has upped production in Indiana since 2010 is to counteract foreign exchange rates that hurt profits on imported vehicles.
Yasuyuki Yoshinaga, President of Fuji Heavy, wants the Indiana plant to build 200,000 vehicles a year by 2014.
"The expansion of SIA's capacity is necessary to meet growing demand for Subaru vehicles in the North American market," said Tom Easterday, Executive Vice President of Subaru of Indiana Automotive. "The success of the Legacy and Out-back is the result of innovative design focused on customer needs, a strong reputation for quality and reliability, and consistently achieving top safety ratings."
Subaru said it will expand its Lafayette, Ind., plant to boost production of the Outback crossover and Legacy sedan.
The $75 million, 52,000-square-foot expansion of the plant's body assembly section is slated to start this summer, increasing the plant's capacity to 180,000 vehicles during regular shifts, according to Subaru. The current limit is 156,000 units on straight time.
The expansion also is expected to create 100 full-time jobs, according to Subaru, a unit of Fuji Heavy Industries Ltd. of Japan.
The Lafayette plant employs 3,600, with more than 600 jobs added since 2009, Subaru said.
In 2011, more than half of Subaru's vehicles sold in North America were assembled at the Indiana plant, which opened in 1987.
The plant made 170,629 vehicles in the 2012 fiscal year, but overtime shifts were needed to reach that number.
Another reason why Subaru has upped production in Indiana since 2010 is to counteract foreign exchange rates that hurt profits on imported vehicles.
Yasuyuki Yoshinaga, President of Fuji Heavy, wants the Indiana plant to build 200,000 vehicles a year by 2014.
"The expansion of SIA's capacity is necessary to meet growing demand for Subaru vehicles in the North American market," said Tom Easterday, Executive Vice President of Subaru of Indiana Automotive. "The success of the Legacy and Out-back is the result of innovative design focused on customer needs, a strong reputation for quality and reliability, and consistently achieving top safety ratings."
