Subaru US plant to officially stop making Toyota Camry after 2016 image

Subaru’s plant in Indiana will stop making Toyota Motor Corp.’s Camry, the best-selling car in the U.S., after 2016, an executive for the automaker unit of Fuji Heavy Industries Ltd. said.

Toyota decided not to renew a contract to have the Lafayette, Indiana, factory build the Camry, said Tom Easterday, Subaru of Indiana executive vice president in an interview with media in the US. Jennifer McGarvey, a spokeswoman for the plant, yesterday confirmed Easterday’s remarks and said he would have no further comment.

The Camry, the leader in U.S. car sales for 11 years, is also produced at a Toyota factory in Kentucky. Output at the Subaru plant has helped keep the model ahead of Honda Motor Co.’s Accord. The Camry also faces intensified competition from Nissan Motor Co.’s Altima and Ford Motor Co.’s Fusion.

Easterday told television station WLFI and the Journal and Courier newspaper that the end of Camry production wouldn’t cause any reduction in the 3,600 workers at the factory. Toyota’s decision may delay plans to add 900 employees there, he told the Journal and Courier.

Toyota is in discussions with Fuji Heavy, Keisuke Kirimoto, a spokesman for Toyota, said today as the company based in Toyota City, Japan, is Fuji Heavy’s largest shareholder, with a 16.5 % stake.

Via Bloomberg