Subaru to End U.S. Factory Sharing with Toyota

Fuji Heavy Industries Ltd. says it will boost its Subaru carmaking capacity in the U.S. to 370,000 units by 2016 from 170,000 today, The Nikkei reports.

FHI previously planned to achieve that goal by adding 200,000 units of output to its factory in Indiana. Now it says it will spend $400 million to add 100,000 units but also capture another 100,000 units by ending the factory's existing contract production of Camry sedans for Toyota Motor Corp.

The two moves would boost U.S. production of the popular Subaru Forester SUV from 170,000 units to 270,000 units, according to The Nikkei. FHI reportedly will add production of at least one more model, the Impreza small sedan.

The U.S market accounts for half of Fuji Heavy's global sales, which are likely to approach 800,000 units this year.

About 70% of Subaru's global production occurs in Japan, the highest ratio for any major Japanese carmaker. Hiking production in the U.S. would reduce FHI's exposure to currency fluctuations and could shorten delivery times.

Toyota's exit from the Lafayette plant is not expected to affect its collaboration with Subaru to produce a hybrid SUV for each brand by 2017. Last year the two companies rolled out co-developed sports cars: the Toyota 86 and Subaru BRZ.