Report – Subaru gives up plans to produce the Crosstrek in the US image

Fuji Heavy Industries, the parent company of the Subaru brand, has apparently axed its strategy that called for a relocation of the production of the new XV Crosstrek to its US factory, according to a person that has knowledge of the company’s production strategy.

The source, who declined to be named because the plans are not public yet, has said that Fuji Heavy which tends to traditionally produce the cars in the markets where they get delivered, has opted this time around for a Japanese production of the crossover. That’s largely due to capacity constraints at the assembly facility in Indiana and the high price targeted for the XV Crosstrek – which would make domestic production more profitable for the brand. The prices start at just under $25,000 for a limited edition and immediately below $30,000 for the hybrid variant.

The updated production scenario discards the previous idea of building around 65,000 XV Crosstrek vehicles annually at the Lafayette, Indiana plant and instead calls for the assembly to take place in Japan at a Gunma prefecture, northwest of Tokyo factory. Subaru has so far tallied record sales in the United States, with its deliveries jumping 21% so far this year through November. Fuji Heavy’s decision to build the new Crosstrek in Japan falls in line with the policy applied by other domestic automakers, which shifted back production home to take advantage of the weakening yen.

Via Reuters