Fuji Heavy Industries Ltd., which owns the Japanese automaker Subaru, but also has some of its shares belonging to Toyota, the world’s largest automaker, has announced it would stop making Camry cars in the US in 2016.
Toyota Motor Corp. is Fuji’s largest shareholder but only controls a minority part of the stakes, which means decision that concern both companies need to be thoroughly negotiated. The Tokyo-based Fuji Heavy announced that from the second half of 2016, Toyota’s Camry model would cease production at its sole US plant – located in Indiana.
In a separate statement, Toyota announced that once Camry production is finished at the Subaru facility, the model’s output would shift to a plant in Kentucky, while both carmakers would continue their long running collaboration on products and technology.
Subaru is expanding the factory in Indiana to allow for increased production – up from 300,000 cars to at least 400,000 when completed – to cater for expanded sales in its largest single market. With North America as its “top-priority market,” Fuji presented a mid-term business plan in which it aims to grow worldwide sales by 2021 to at least 1.1 million vehicles annually. The group also forecast a net income increase of 4.1% to 215 billion yen ($2.1 billion) in the fiscal year ending March 31.