Subaru Eyes Capacity Boost in Indiana

Fuji Heavy Industries Ltd. is considering a plan to expand capacity at its Subaru assembly plant in Lafayette, Ind., according to Tom Doll, COO of Subaru's U.S. unit.

FHI President Yasuyuki Yoshinaga told The Nikkei last month that the company would decide by year-end whether to boost Subaru's North American capacity. He didn't specify whether the company was thinking of erecting a new factory or expanding the Lafayette facility.

Subaru expects the Indiana plant to produce a record 277,800 vehicles this year. The brand's U.S. sales soared 29% year over year to a record 299,800 vehicles in January-November 2012, including a 60% surge to 28,200 units last month.

The Lafayette factory makes the Subaru Legacy midsize sedan, Outback wagon and Tribeca crossover vehicle. It also builds the Camry midsize sedan for Toyota Motor Corp. FHI is considering shifting production of the Subaru Impreza compact car and Forester midsize crossover there from Japan to avoid the strong yen and high shipping costs.

Doll says the company has enough land at the Lafayette site to add another assembly facility, if needed.