Subaru to Increase Capacity in the US by 30% image

Fuji Heavy Industries, the owner of Subaru brand, plans to increase production in the US by almost 30% by 2016.

Fuji Heavy Industries will invest 20 billion yen ($230 million) in its only overseas facility, Subaru of Indiana Automotive, according to the Nikkei business daily. The paper also reported that the Japanese automaker plans to boost capacity by 30,000 vehicles by 2014. The Indiana plant currently produces 170,000 Subaru models annually and 100,000 Camry vehicles for Toyota Motor.

In 2011 Fuji Heavy sold almost 330,000 cars in the US, half of them being shipped from Japan. The automaker expects demand for its Subaru Impreza model to increase in the US, and this is what prompted the company to increase production in this market. Last year Fuji Heavy announced it aims at selling 1 million vehicles globally in ten years.

The automaker has two major manufacturing plants, in Indiana and in the Gunma Prefecture in Japan, which can manufacture about 750,000 vehicles annually. Although Fuji Heavy was considering building a new facility in Mexico, it decided to expand the one in the US as a cheaper option. According to the automaker, the North American market accounts for half of the company’s total sales.