Japan-based automaker Subaru will invest approximately $400 million to increase the workforce at its Lafayette, Indiana, manufacturing campus and bring production of its popular Impreza model to North America.
The automaker said will expand its manufacturing center, known as SIA-Subaru Indiana Automotive, to produce its popular compact sedans and hatchbacks in the US, creating 900 new jobs. The company said its announcement comes on the heels of a banner year and new milestones in its history as sales continue to climb. Record sales and a gain in market share for Subaru in North America led parent company, Fuji Heavy Industries, Ltd., to invest $400 million to build the Impreza at its North American production facility, Subaru Indiana Automotive, and increase the plant's capacity by approximately 100,000 vehicles annually.
Expansion will involve increasing SIA's total square footage by over half a million square feet. The project will also involve the installation of new state-of-the-art equipment, primarily in the paint and body assembly sections, as well as changes to improve overall process flow.
"The success of the Subaru brand can be credited, in part, to the dedication of SIA's highly skilled associates," SIA's executive vice president, Tom Easterday said. "Our associates are very excited about the opportunity to build the Subaru Impreza at SIA and will remain committed to the same high level of quality, safety and teamwork that goes into every Subaru built at SIA." Subaru models currently produced at SIA include the Outback, Legacy and Tribeca, while the Impreza is currently built only at Subaru's Yajima and Gunma plants in Japan.
"The Subaru Impreza has been a favoured choice of many Canadians as it delivers more than what's expected in a compact car," said Shiro Ohta, president and CEO of Subaru Canada, Inc. "FHI's decision to move production to SIA illustrates their confidence in Subaru's North American market as we continue to set sales records and gain market share."
Construction of the planned expansion is slated to begin this fall and is expected to be completed by the end of 2016. Meanwhile, Construction continues on the $75 million expansion project announced last May, which will increase SIA's capacity from 156,000 to 180,000 Subaru units annually without overtime.