Subaru’s failed relationship with China hasn’t burdened Subaru with too much baggage; the automaker is already moving on, planning to expand its Indiana plant to build more Legacy and Outback models.
The 52,000 square foot expansion will be worth $75 million. The body assembly facility will be the main area of focus, and is expected to take capacity from 156,000 units to 180,000 units assuming no overtime is worked. 100 jobs will also be added. Further expansion, including an all-new plant, is also on the table for Subaru.
As far as we know, the rising yen and a need to focus on North America makes the case for expanded capacity on this continent even more compelling. One only needs to look at other small automakers like Mazda to see just how badly the rising yen can hammer a company – though Subaru does have the backing of parent company Fuji Heavy Industries, while Mazda is essentially on its own.