Subaru Accelerates US Production Expansion to Meet Surging Demand
Subaru will boost capacity at its Indiana plant to nearly 400,000 vehicles by early 2017, four years ahead of its original schedule, as US sales continue to break records.
Subaru is accelerating its North American production plans in response to soaring demand in the US, its largest market. The Japanese automaker is bringing forward its capacity expansion at the Lafayette, Indiana plant by four years, aiming to produce nearly 400,000 vehicles annually by early 2017. This move comes as Subaru experiences a seventh consecutive year of record deliveries in the United States, with dealers struggling to keep up with customer demand.
The Lafayette facility, Subaru’s only assembly plant outside Japan, currently builds the Outback crossover and Legacy sedan. Starting in 2016, the Impreza compact will also be produced at this site, supporting the ramp-up in output. North America now accounts for 62 percent of Subaru’s global sales, underlining the importance of the US market to the company’s overall performance.
Subaru’s Accelerated Expansion Plan
Originally, Subaru’s parent company Fuji Heavy Industries had scheduled the Lafayette plant’s maximum output to reach 328,000 vehicles by the end of 2016, with a further increase to around 400,000 vehicles during the fiscal year ending March 2021. However, strong and sustained demand in the US has prompted Subaru to bring forward the expansion timeline. The company now expects to achieve the 400,000-unit target by the start of 2017, four years earlier than planned.
Fuji Heavy Industries president Yasuyuki Yoshinaga has acknowledged that Subaru’s US dealers have faced ongoing shortages of vehicles, limiting their ability to meet customer needs. Management believes that sales could be even higher if supply constraints were eased. The decision to accelerate the plant expansion is intended to address these shortages and support continued growth in the crucial North American market.
Impact on Dealers and Buyers
US dealers have frequently cited stock shortages as a barrier to maximising sales, especially as Subaru’s market share has grown in recent years. With increased production capacity, dealers should be able to reduce customer waiting times for popular models such as the Outback and Legacy, and, from next year, the Impreza. For buyers, this means greater availability of new vehicles at local showrooms, potentially making it easier to find the desired model and specification.
The Lafayette plant’s role as Subaru’s only manufacturing site outside Japan makes it a linchpin of the company’s North American growth strategy. By expanding output there, Subaru aims to strengthen its position in the US market and respond more effectively to local demand.
Comparison with Industry Trends
Subaru’s decision to accelerate US production aligns with a broader trend among global automakers to localise manufacturing and rapidly adjust capacity in response to market needs. For example, Volkswagen has set ambitious production targets in China, while Fiat has shifted SUV production to Italian plants. Subaru’s move is a direct response to immediate market realities, rather than a speculative long-term strategy.
Key Models Produced in Indiana
- Outback: currently produced in Indiana, remains a core US model.
- Legacy: built alongside Outback at Lafayette.
- Impreza: US production to begin in 2016 as part of the expansion.
