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Fuji Heavy Increasing Production At Indiana Plant

Fri, 04/18/2014 - 8:11am

NEW YORK (Kyodo) -- Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, will boost production capacity at its plant in Fayetteville, Indiana by 30,000 units by the summer to address strong demand in the U.S, company president Yasuyuki Yoshinaga said.

The plant's capacity is currently 1,7000,000 units and the increase will support the U.S. launch of the new Legacy sedan that will go on sale this summer.

Speaking on the sidelines of the New York International Auto Show, Yoshinaga said the production boost is a response to a 26.2 per cent increase in annual sales last year in the country. The company expects to grow about 8 per cent this year to 4,600,000 units in the vital U.S. market.

"The increase in output capacity should allow us to deliver cars to our customers, but there's a possibility we'll face additional supply issues if there is another drastic jump in sales," Yoshinaga said Wednesday.

He also revealed that the company ended production of the Tribeca SUV in January. Yoshinaga added that he expects the 2015 Outback--sold in Japan under the "Legacy Outback" nameplate--to appeal to owners of the outgoing SUV.

When asked about whether the Levorg station wagon, which goes on sale in Japan in June, might be sold overseas, Yoshinaga said that the company would "evaluate the options if there is demand in Europe and Australia."

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