Fuji Heavy Industries said it plans to double production capacity of Subaru vehicles in the US to 370,000 units a year following an increase in demand. Its models are especially popular in ‘snowbelt’ states.
The carmaker will convert lines at its plant in Indiana, which currently assemble minority shareholder Toyota’s Camry under contract, to produce Subarus plus increase annual capacity from 270,000 to 370,000 vehicles a year.
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Fuji will soon begin talks with Toyota about ending the Camry contract and plans to have the changes in place by fiscal 2016.
The US accounts for 50% of Subaru’s global sales and the Forester sells particularly well. Success in North America could allow the carmaker to surpass its projection of worldwide auto sales for fiscal 2013 – a 4% rise on the year to 751,500 vehicles – possibly reaching 800,000 units.
Fuji currently makes around 70% of its vehicles in Japan and increasing local production in America would make the company less susceptible to currency fluctuations and shorten delivery times.
Subaru of Indiana began making the Camry in 2007 after Toyota became its top shareholder in 2005 by acquiring shares from General Motors. Now Fuji’s earnings are improving, the partnership between the two firms will likely shift focus to strengthen collaboration in hybrid vehicle technologies and development of sports cars like the shared Toyota GT86 and Subaru BRZ.
