Fuji Heavy Industries (FHI) has decided to keep production of the new Subaru XV Crosstrek in Japan rather than transfer the model to its Indiana plant in the US as had been previously announced.

The company cited capacity constraints at Indiana as the main reason for the change of plan, according to reports in Japan, although the sharp slide in the value of the yen over the last year is understood to have been a significant factor.

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FHI had originally announced plans to produce up to 65,000 XV Crosstrek vehicles per year in Indiana, as part of its drive to produce more vehicles closer to where they are sold.

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