Create a free Manufacturing.net account to continue

Subaru Maker Teams with Toyota to Increase U.S. Plant Production

Fuji Heavy Industries and Toyota Motor Corp. announced plans to produce approximately 100,000 Toyota Camry models at Fuji's Indiana plant. The two companies will also team up on hybrid technology.

Toyota and Subaru maker Fuji Heavy Industries will produce approximately 100,000 Toyota Camry models a year at Fuji's U.S. plant in Indiana, according to a report by the Associated Press. The report says that the two companies will begin their joint venture in in the spring of 2007.

According to Toyota Motor Corp. and Fuji Heavy Industries Ltd. the venture is expected to create approximately 1,000 jobs at the Subaru of Indiana Automotive Inc. plant, which currently employs 2,300 people. The companies said that the venture is expected to raise the plant's annual production to 240,000 vehicles.

The Camry sedan, which is the best-selling car in the U.S. is currently produced in the U.S. at Toyota's plant in Georgetown, KY. The Subaru plant in Indiana currently produces Subaru Outback station wagons and Legacy sedans.

During a news conference in Tokyo, Fuji Heavy President Kyoji Takenaka and Toyota President Katsuaki Watanabe said the automakers will also work together to produce Fuji hybrid vehicles using Toyota's hybrid technology, but gave few details.

The move takes place less than six months after General Motors Corp. said it was ending its alliance with Fuji. At that time, Toyota bought an 8.7 percent stake in Fuji for $315 million and became the top shareholder in Fuji.