Subaru Is Like, So Over China, Totally Moved On To America

Derek Kreindler
by Derek Kreindler

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.

Derek Kreindler
Derek Kreindler

More by Derek Kreindler

Comments
Join the conversation
 9 comments
  • Wstarvingteacher Wstarvingteacher on May 17, 2012

    I remember helping a guy with his subaru brat. It was so like a vw mirror image and I had worked with my beetles. Life was simpler then but I still like the brand. I wish them success.

  • Icemilkcoffee Icemilkcoffee on May 17, 2012

    They need to rethink the AWD only strategy though. With modern traction control getting better and better every year, there is simply less and less need for AWD. Also- Mitsubishi is about to put out a hybrid Outlander, which uses the gas engine to drive the front wheels and electric motors to drive the back wheels. This avoids the inefficiency of a traditional AWD drivetrain. This is the way of the future. Subaru is going to be caught flatfooted if they miss the larger trend.

    • See 4 previous
    • MrWhopee MrWhopee on May 18, 2012

      @highdesertcat Growth is overrated. If you're already making money hands over fists, you don't need growth. Growth is important only for investors who wants share price to go up or some kind of dividends. If you have your own business and it's running well as it is, and it's making good money, why muck it up?

  • Daveainchina Daveainchina on May 17, 2012

    Subaru really needs to increase their mpg. If they can figure out how to do 4wd and get really good mpg they will continue to have good sales. If not, I suspect we are seeing the beginning of a long slow death spiral.

  • "scarey" "scarey" on May 18, 2012

    Subaru KNOWS how to increase their mileage. They used to make higher mileage cars, but they were tinny and spartan. They could go back to them, but that isn't the way the market is going, unless a certain president gets re-elected for 4 more years. *puts on beekeeping outfit for expected swarming attack*

Next