Subaru look to increase production

Subaru look to increase production

Subaru want to increase production by 30% by 2016

Subaru’s brand Fuji Heavy Industries Ltd are said to increase their production capacity at a United States plant by around 30% by 2016. The company is allegedly meant to be investing around $230 million, equivalent to 20 billion Yen into the Subaru of Indiana Automotive, which is it’s only vehicle plant overseas.

Fuji Heavy Industries plan to raise the production capacity by atleast 30,000 models by 2014. The factory currently manufacturer around 170,000 units of Subaru cars and for the Toyota Motor Corporation 100,000 Camry cars.

Last year in the United States, Fuji Heavy Industries sold almost 330,000 vehicles, though they had to bring almost half of them in from Japan. The strong yen of has actually undermined the profitability of models that are assembled in Japan and then exported, which has prompted other manufacturers such as Nissan and Mazda to move their output to overseas. Fuji Heavy Industries have high expectations for the North American demand for the Subaru Impreza model which originally initiated the increase of production. The company had stated in 2011 that it would be looking to increase their global sales to 1 million vehicles in ten years.

Subaru decided against decisions to open factory in Mexico

The two prime production facilities of the company, the Lafayette industrial plant and the plant in the Gunma Prefercture in Japan produce around 750,000 vehicles in a year. North American sales account for just a small amount under half of Fuji Heavy Industries total sales. There were talks within Subaru of building a brand new factory in Mexico, although it was decided that the expansion of the United states facility would be the cheaper option.