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Fuji Heavy Mulls Building New Subaru Plant In U.S.

Fri, 06/08/2012 - 9:59am
The Associated Press

TOKYO, June 8 (Kyodo) — Fuji Heavy Industries Ltd., the maker of Subaru brand cars, is considering building a new plant in the United States to begin operating possibly in the year starting in April 2015 after facing difficulty launching production in China, sources familiar with the matter said Friday.

By investing about 40 billion yen, the automaker aims to construct a plant capable of producing 100,000 vehicles a year on the premises of an existing plant in Indiana to meet strong demand in the country, they said.

Fuji Heavy President Yasuyuki Yoshinaga said last month the company will prioritize beefing up production in the United States, deeming it is difficult to set up a joint venture and start production in China as its authorities have not yet accepted its application.

Fuji Heavy, which produces automobiles in Japan and the United States, has seen a shortage of stock amid robust sales of its mainstay Legacy series and the Impreza compact car. Faced also with a strong yen that eats into exporters' profits made overseas, the automaker came up with the plan to expand production in the United States.

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