Fuji Heavy to End Toyota Camry Production in U.S.

Subaru maker Fuji Heavy Industries Ltd. says it will phase out contract production of Toyota Camry sedans at its factory in Lafayette, Ind., in the second half of 2016. The facility has capacity to build about 100,000 Camrys per year.

Toyota, which owns 16% of FHI, will move the Indiana output to its own assembly plant in Georgetown, Ky. The Kentucky facility already makes the Camry, Venza crossover and Avalon large sedan and is preparing to add the Lexus ES 350 luxury sedan next year.

FHI said last October it will invest $400 million to expand its Lafayette factory's capacity by 100,000 units. Media reports at the time said the facility intends to boost annual output of Subaru Forester SUVs to 270,000 units from 170,000 currently and add production of the Impreza small sedan.

FHI and Toyota say the production shift won't negatively affect their collaboration to introduce an SUV for each brand in 2017. The companies debuted the co-developed Toyota 86 and Subaru BRZ sport coupes two years ago.