Fuji Heavy Industries' subsidaiary Subaru said it plans to spend an additional US$140m on its Lafayette car plant in Indiana, USA, over the next two years to expand capacity. The automaker in 2013 announced a US$400m plan to add an assembly line for the Impreza sedan which is scheduled to go into production at the end of 2016.

The Indiana plant is Subaru’s only manufacturing facility outside Japan and currently employs 3,800 people building the Outback SUV and Legacy sedan.

Subaru’s sales in the USA rose 21% year on year to 513,693 units last year, according to just-auto data, while its year to date 2015 sales to the end of August were up 12.5% to 375,632.

The additional spending announced this week will create a further 1,200 jobs and lift annual capacity by 100,000 units to 400,000.