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Area Development - Site Selection, Facility Planning and Workforce Development

Subaru of Indiana Automotive Plans Major Expansion at Its Lafayette, Indiana, Manufacturing Campus

09/22/2015
Subaru of Indiana Automotive plans to significantly expand its manufacturing center in Lafayette, Indiana. The company plans to create up to 1,204 new jobs by 2017.

SIA will invest $140.2 million to increase its production capacity by nearly 100,000 units annually. The company will upgrade its existing campus at 5500 State Road 38 East and purchase new machinery and equipment in order to support the expansion and meet the growing demand for Subaru vehicles in North America. Established in 1987, SIA is a wholly-owned subsidiary of Japan-based Fuji Heavy Industries Ltd. and is one of only three Subaru assembly plants worldwide. SIA, which builds the Subaru Outback, Subaru Legacy and Toyota Camry, is Subaru’s only production facility located outside Japan.

"SIA associates do an outstanding job of building superior quality into every vehicle, which has helped propel the Subaru brand to tremendous success in the North American market. SIA's investment of approximately $140 million and the creation of over 1,000 new jobs at SIA over the next two years will enable SIA to build more Subarus to help meet the growing demand,” said Tom Easterday, Executive Vice President of SIA. “The substantial increase in production volume at SIA will also result in new jobs and investment by many of our suppliers across Indiana. We greatly appreciate the support of state and local government for this significant economic development project."

“Last week’s meetings with government leaders and business executives across Japan have strengthened our economic ties with companies operating in Indiana and sparked momentum for job creation in the Hoosier State,” said Governor Mike Pence.

“Subaru chose Indiana as the home for its only assembly plant outside Japan, and now the company is choosing Indiana once more. Last week, executives at Subaru’s parent company told us they are choosing to locate 1,200 new jobs in Indiana because of the long-term relationships we’ve developed and the business climate we’ve built, two things that we’ll keep doing to make sure Indiana remains a state that works,” he added.

SIA currently employs more than 3,800 Hoosiers and produces approximately 300,000 cars each year. The facility has built more than 4 million vehicles, including more than 2 million Subarus, since the start of production in 1989. The company’s expansion is also expected to spur growth of its direct material suppliers as well, including 28 located across Indiana.

The Indiana Economic Development Corporation offered Subaru of Indiana Automotive up to $7,650,000 in conditional tax credits and up to $250,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Lafayette and Tippecanoe County will consider additional incentives at the request of the Greater Lafayette Commerce.

"From the plans to build that were announced almost three decades ago to today's word that new jobs and expanded production are ahead, Tippecanoe County has eagerly welcomed every step,” said Tippecanoe County Commissioner Tom Murtaugh. “We are grateful to be called home by this leading automaker.”

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