Subaru to Unveil U.S. Capacity Expansion Next Month

Fuji Heavy Industries Ltd. is finalizing a plan to boost the U.S. capacity of its Subaru unit, FHI CEO Yasuyuki Yoshinaga tells reporters.

He says the company expects to reveal the details when it reports earnings in May. FHI said in January that it has decided to expand its assembly plant in Lafayette, Ind., instead of building a new factory. The company also has said it will add a new unidentified model in 2016.

The Nikkei reported early this year that FHI would invest 20 billion yen ($204 million) to hike capacity in Lafayette by 100,000 units to a total of 370,000 vehicles by early 2016. The facility produced nearly 278,000 vehicles last year by working a significant amount of overtime.

The Indiana Subaru plant makes the Toyota Camry and Subaru Legacy midsize sedan, Outback wagon and Tribeca crossover vehicle. The brand ended March with a 36-day supply of vehicles compared with the ideal 60- to 65-day inventory, according to Automotive News.