Subaru Plans Expansion of its Indiana Plant image

Subaru plans to expand its Indiana plant trying to boost output in the US and meet increasing demand for its models.

Subaru and parent Fuji Heavy Industries are considering the expansion of the Lafayette, Indiana plant, according to Tom Doll, Subaru’s U.S. executive vice president and chief operating officer. He added that the companies have not decided yet whether they will add production of the Forester crossovers or the Impreza cars.

” The combination of a high yen and expensive shipping costs means it becomes more difficult with production in Japan to import those vehicles into the United States. At some point a decision could be made to bring further production to the United States,” said Tom Doll.

Fuji Heavy joins Nissan, Toyota, Mazda ad Honda in their attempt to increase production capacity in North America to make up for the losses made by the yen’s persistent strength in comparison with the dollar. Over the past 5 years the dollar’s value has fallen about 25% against the yen, eroding the value of rising U.S. sales.

This year so far demand for Subaru’s all-wheel-drive cars and light trucks has increased 29% to 299,788 units, due to a 60% increase last month. The automaker expects production at the Lafayette plant to reach a record 277,835 units by the end of this year.