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Subaru Starts Building New SUV in Indiana

The Subaru factory in Lafayette has started building a redesigned Outback SUV.

LAFAYETTE, Ind. (AP) -- The Subaru factory in Lafayette has started building a redesigned Outback SUV.

Factory workers gathered Monday to celebrate the first day of production on the 2015 model, which is among three Subaru vehicles built there.

Subaru of Indiana president Toshiaki Tamegai told the Journal & Courier that the Outback is essential to the success of the automaker.

Subaru is working on plans for a $400 million expansion and upgrade of the Lafayette factory. Company officials say the start of production on the Impreza small car at the factory in 2016 will make up for Toyota's decision to stop building cars at the Lafayette plant.

Subaru of Indiana vice president Tom Easterday tells WLFI-TV the 3,600-worker factory is scheduled to make more than 300,000 vehicles by the end of March 2015.

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