Subaru will begin building the Impreza compact model at its Lafayette, IN, plant in 2016.
The auto maker will invest approximately $400 million to expand the plant for the Impreza, which currently is sourced for the U.S. from Subaru’s Yajima and Main plants in Japan.
Subaru already assembles the Legacy sedan, Outback wagon and Tribeca cross/utility vehicle at the Indiana plant.
The expansion of more than 500,000 sq.-ft. (46,451 sq.-m) should boost the plant’s annual capacity by 100,000 units, Subaru says.
As part of the Lafayette expansion, Subaru will install new equipment in the plant’s paint shop and body assembly areas.
Subaru expects 900 jobs to be created thanks to the added capacity. Construction of the new space is to begin this fall and be complete by late 2016.
Subaru already is in the midst of a volume expansion in Indiana, a $75 million investment to boost straight-time capacity from 156,000 units annually to 180,000.
Subaru, once a small-volume brand in the U.S., has seen strong sales growth in the past decade, even during the recession when many auto makers watched their U.S. volume fall.
Subaru sales last year tallied 366,441, the sixth consecutive yearly increase for the brand, WardsAuto data shows.
Subaru of America President Tom Doll recently told WardsAuto he expected U.S. sales to reach 380,000 units this year, and possibly 400,000 if the market remains strong.
Subaru surpassed 300,000 U.S. sales for the first time in 2012.
