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Posted May 9 , 2013

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Manufacturing

Subaru Canada announces North American expansion

Expansion investment estimated at $400 million as SIA adds Subaru Impreza production.

MISSISSAUGA - Subaru Canada, Inc. (SCI) announced that its popular compact car, the Subaru Impreza, will be produced in its North American plant beginning in 2016. The announcement arrives on the heels of a banner year and new milestones in company history as sales continue to climb. Subaru of Indiana Automotive, Inc. (SIA), the North American manufacturer of Subaru vehicles, will expand its plant in Lafayette, Indiana to produce the popular compact sedans and hatchbacks, creating 900 new jobs in the process.

Record sales and a gain in market share for Subaru in North America led parent company, Fuji Heavy Industries, Ltd. (FHI), to the decision to invest $400 million to build the Impreza at its North American production facility, SIA, and increase the plant's capacity by approximately 100,000 vehicles annually. The expansion will involve construction to develop SIA's total square footage by over half a million square feet. The project will also involve the installation of new state-of-the-art equipment - primarily in the paint and body assembly sections - as well as changes to improve overall process flow, including the addition of 900 jobs to its workforce.

"The success of the Subaru brand can be credited, in part, to the dedication of SIA's highly skilled associates," stated SIA's executive vice president, Tom Easterday. "Our associates are very excited about the opportunity to build the Subaru Impreza at SIA and will remain committed to the same high level of quality, safety and teamwork that goes into every Subaru built at SIA."

Subaru models currently produced at SIA include the Outback, Legacy and Tribeca, while the Impreza is currently built only at Subaru's Yajima and Gunma plants in Japan. Powered by Subaru's 2.0-litre, 4-cylinder horizontally opposed SUBARU BOXER engine and Subaru's celebrated symmetrical full-time All-Wheel Drive, the fun-to-drive Impreza is popular for its award-winning safety, value and excellent fuel economy.

"The Subaru Impreza has been a favoured choice of many Canadians as it delivers more than what's expected in a compact car," said Shiro Ohta, president and CEO of Subaru Canada, Inc. "FHI's decision to move production to SIA illustrates their confidence in Subaru's North American market as we continue to set sales records and gain market share."

Construction of the planned expansion is slated to begin this fall and is expected to be completed by the end of 2016. Construction continues on the $75 million expansion project announced last May, which will increase SIA's capacity from 156,000 to 180,000 Subaru units annually without overtime.

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