Subaru of Indiana Automotive plans to spend $140.2 million to expand its plant in Lafayette and add as many as 1,200 workers before the end of 2017, the company announced Monday morning.
Subaru, which employs thousands of workers in Indiana at its Lafayette plant, may sell more than 600,000 vehicles in North America in 2015, five years ahead of its mid-term plan.
Fuji Heavy Industries Ltd., the maker of Subaru cars, will stop making Camry cars in the U.S. for its largest shareholder, Toyota Motor Corp., in the second half of 2016. About 100,000 Camrys are made annually at the Indiana plant.
Subaru, which added more U.S. market share than any international carmaker last year, is pushing ahead with U.S. expansion plans as it awaits a Toyota’s decision on whether it will keep building Camrys at Subaru’s Indiana plant.
Subaru is moving ahead with its plans for spending more than $400 million to expand and upgrade its Lafayette factory while significantly scaling back the expectations for new jobs.
Toyota remained the top-selling automaker for a second year in a row, beating U.S. rival General Motors by some 270,000 vehicles in 2013.
Honda and Subaru led U.S. sales gains in August as auto demand beat projections and Asia-based carmakers, buoyed by Toyota Motor Corp., combined for their best month ever.
Executives at the company, which counts Toyota Motor Corp. as its biggest shareholder, will begin discussions this month through next year to determine the long-term direction of the Tokyo-based company.
The Japanese car maker already employs about 3,600 people at the plant and builds the Legacy and Outback cars and the Tribeca SUV. With the new investment, it will boost capacity by 100,000 cars and begin making the Impreza.
Fuji Heavy Industries Ltd., the Japanese maker of Subaru cars, intends to end a shortage of its vehicles at U.S. dealerships soon by expanding capacity at its Lafayette plant.