LAFAYETTE, Ind. (WLFI/AP) - Fuji Heavy Industries announced Wednesday it is expanding its Lafayette Subaru factory by adding 900 workers and investing $400 million in the plant.
Starting in 2016, Subaru of Indiana Automotive will build the Impreza.
The Subaru Legacy, Outback and Tribeca SUV are all made at the Lafayette plant – as well as the Toyota Camry under a contract with the Toyota Motor Corp.
The 900 new jobs will add to the current tally of about 3,600 employees. More than 600 workers were added in the past four years.
Subaru spokesman Yoshiaki Tabei said the target date for starting production of the Impreza is the end of 2016. The company plans to expand the plant's production capacity by approximately 100,000 vehicles annually.
The company will grow its campus by more than 500,000 square feet. The campus sits on 832 acres. New paint and body assembly equipment will be installed. Construction will begin in the fall and should be completed by 2016.
"We are proud that Indiana will be home to the continued investment of a world-class company like Subaru," Gov. Mike Pence said in a press release. "With our competitive tax climate, strong workforce and unmatched infrastructure, the world recognizes that the Hoosier State is open for business."
The announcement is the second major expansion in a year. Last May, SIA promised 100 new jobs in Lafayette.
The Indiana Economic Development Corp. offered SIA up to $9.5 million in conditional tax credits and up to $500,000 in training grants based on the company's job creation plans.
The Greater Lafayette Commerce requested that the City of Lafayette consider additional property tax abatements.
At the end of the fiscal year in March, Subaru had sold 724,500 vehicles globally. That's up 13 percent from the previous year. There were 357,000 sold in the U.S. 163,100 were sold in Japan. In the past five years, Subaru's U.S sales have doubled.
Due largely to a shortage of vehicles on dealer lots, the amount of Imprezas sold in the U.S. have fallen 31 percent this year. In fact, Ward's Automotive said Subaru has only enough Imprezas on the ground to supply dealers for 29 days. A 60-day supply is considered optimal.
About 108,000 Imprezas were sold in the U.S. this past fiscal year. All of those vehicles were imports from Japan.
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