Fuji Heavy to Boost Subaru Engine Output 20%

Fuji Heavy Industries Ltd. plans to increase annual capacity at its Subaru engine plant in Gunma Oizumi, Japan, from 800,000 today to 960,000 units by 2016, The Nikkei reports.

The facility is the sole source for Subaru engines. Fuji Heavy has said it will hike its annual carmaking capacity to nearly 1.1 million vehicles by fiscal 2020.

The expanded carmaking capacity will begin this summer with a 3 billion-yen ($29 million) project to add 5,000 units of yearly capacity at Subaru's Forester SUV plant in Gunma Yajima. The factory's current annual capacity is 622,000 units.