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Subaru Delays U.S. Capacity Decision

President Yasuyuki Yoshinaga tells Bloomberg News that Fuji Heavy Industries Ltd. has postponed until March a decision about whether to expand its North American factory capacity.

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President Yasuyuki Yoshinaga tells Bloomberg News that Fuji Heavy Industries Ltd. has postponed until March a decision about whether to expand its North American factory capacity.

Yoshinaga says the three-month delay isn't problematic because slumping demand in China and Europe is allowing the company to divert more vehicles to America. Subaru's U.S. sales have surged 29% to a record 299,800 vehicles in the first 11 months of 2012.

Yoshinaga predicts FHI will choose an "incremental" expansion of its existing facility in Lafayette, Ind., rather than building a new assembly plant. He says the search for more capacity will not cause the company to curtail the Indiana factory's production of Camry sedans for Toyota Motor Corp.

Gardner Business Media - Strategic Business Solutions