By on May 17, 2012

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.

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9 Comments on “Subaru Is Like, So Over China, Totally Moved On To America...”

  • avatar

    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.

  • avatar

    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.

    • 0 avatar

      Subaru’s AWD philosophy is what sells. A friend of the family who operates a Ski-resort in the nearby mountains started off with one lone Subaru, way back when.

      Over the years he accumulated as many as six Subarus, buying them when he finished paying on one, as he expanded the resort. Many of them are still in use today although I don’t know how many he owns now since I haven’t seen him since last year.

      Subies are durable and reliable, as long as you change the oil and filters at least once a year and replace the CV boots and anything rubber that is exposed to the elements.

      • 0 avatar

        ski resorts operators is not a growth industry

        and whats the problem with buying 4wds from other manafacturers… just as good as Subaruas

        subaru with this line of engineering will always just be an offshoot of toyota

        the future is all about hybrids and mpg…

      • 0 avatar

        “ski resorts operators is not a growth industry”

        He’s got more money than I do. I’d say that makes the ‘growth’ aspect immaterial.

        In case you missed it, Subaru will be expanding in the US, produce more vehicles AND open up more dealerships in under-served areas which will equate to more sales of Subaru.

        “the future is all about hybrids and mpg…”

        I’ll believe that when I see it. All the EVs and Hybrids added up together total a fraction of one percent of all the vehicles on the road.

        That’s not going to change until we run out of oil. And that won’t happen for hundreds of years yet. Oil will always be available, albeit at a price, and Americans don’t care what gas costs. They just keep on buying it, no matter what it costs.

      • 0 avatar

        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?

    • 0 avatar

      Subaru is AWD only in North America. Rest of the world, Subaru’s come in different drive train flavors. In addition, in areas where you really notice the difference between AWD and 2WD, the traction control is not going to help. The only thing you might do to the 2WD to enhance its drive-ability in the slippery conditions is to add a limited slip differential such as a Torsen based LSD. Traction control is not even close to a real limited slip differential. A limited slip differential (of Torsen type) coupled with traction control is even better.

  • avatar

    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.

  • avatar

    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*

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