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Subaru of Indiana to boost auto production

Keywords: Tags  Subaru of Indiana, production capacity, expansion project, job creation, Lafayette, Indiana, automotive, Impreza Outback

CHICAGO — Subaru of Indiana Automotive Inc. plans to invest between $400 million and $450 million to expand its Lafayette, Ind., campus, Indiana Economic Development Corp. and the company said in a joint statement.

When the 500,000-square-foot expansion is complete, Subaru of Indiana will be able to build an additional 100,000 vehicles per year. It will also be able to assemble the Subaru Impreza, which is currently manufactured only in Japan.

Construction is set to begin this fall and end by late 2016.

The Lafayette facility, which now makes the Outback, Legacy and Tribeca models, produced a record 271,583 vehicles in the year ended March 31. More than half of all Subarus sold in North America last year were built at the facility.

IEDC offered Subaru up to $9.5 million in conditional tax credits and up to $500,000 in training grants based on Subaru’s job-creation plans, and the city of Lafayette is expected to consider additional property tax abatement.

This will be Subaru of Indiana’s second expansion in less than a year. The Lafayette-based company launched a separate $75-million capacity-boosting capital project at the campus late last May (, May 24).

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