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Subaru investing $400 million for Impreza production in Indiana

As a part of a goal to increase its US sales tally up to 500,000 annual units by the end of the decade, Subaru is investing $400 million in its Lafayette, IN assembly plant in order to start building the Impreza in 2016. According to Automotive News, about half of that investment will be for a new paint plant while another big chunk will be used to extend the assembly line to allow for the increased capacity.
Currently, Subaru's Lafayette plant is responsible for building about 200,000 Legacy, Outback and Tribeca models each year (not including around 100,000 Toyota Camry sedans), but Subaru-specific output will be increased to 300,000 units, requiring an additional 900 new hires as well. Although a previous report suggested the Forester and Impreza would be moving Stateside, this AN article only mentions the hatchback and sedan versions of the Impreza being added to Lafayette - and no mention of the closely related XV Crosstrek.

Subaru recalls 3k Legacy and Outback models for fluid leak

Subaru is recalling 2,893 examples of the 2015-2016 Legacy and Outback because of a potential transmission fluid leak on the two models. The affected vehicles carry build dates between July 3 and July 25, 2015 for the Legacy, and until July 27 on the Outback. According to a Subaru document posted by the National Highway Traffic Safety Administration (as a PDF), during production, the seal cap in the propeller shaft yoke may have been deformed. This could cause a transmission fluid leak, and "there is a possible risk of fire" if the liquid drips onto the exhaust, the report says. Dealers will replace the entire prop shaft on these models, and repairs will start on August 28. New examples will carry a stop-sale until fixed. Related Video: RECALL Subject : Transmission Oil Leak Report Receipt Date: AUG 10, 2015 NHTSA Campaign Number: 15V502000 Component(s): POWER TRAIN Potential Number of Units Affected: 2,893 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU LEGACY 2015-2016 SUBARU OUTBACK 2015-2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain 2015 and 2016 model year Subaru Legacy 4-Door and Outback vehicles manufactured July 3, 2015, to July 27, 2015. Transmission oil may leak from a deformed seal cap on the propeller shaft yoke. CONSEQUENCE: If the transmission oil leaks onto the exhaust pipe, there is a possible risk of fire. REMEDY: Subaru will notify owners, and dealers will replace the propeller shaft, free of charge. The recall is expected to begin on August 28, 2015. Owners may contact 1-800-782-2783. Subaru's number for this recall is WQU-56. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Subaru boosting US capacity thanks to strong sales

It is very, very good to be Subaru right now. The company is rolling, with its global operating profits increasing 21 percent last quarter. While part of that is due to favorable currency conditions, the simple fact is that Subaru is selling a hell of a lot of cars, particularly in North America. The company's North American branch is expected to hit its sales goal of 600,000 units per year five years ahead of schedule, after moving 570,000 units in the recently completed fiscal year (remember, the Japanese fiscal year runs from April 1 to March 31). Last quarter alone, Subaru NA saw a 12 percent increase in sales, significantly more than either the company's home market or the increasingly vital Chinese market, where sales declined by one and 14 percent, respectively. With such promising results, it's no surprise that Fuji Heavy Industries President Yasuyuki Yoshinaga announced plans to bump up production at the company's Indiana factory. Yoshinaga-san is pushing for annual capacity of 394,000 units by the end of calendar year 2016, Automotive News reports, adding that inventory levels in the US are too low. "If only we had more cars, we could be selling more," Yoshinaga told AN during a news conference. FHI's previous plans for the factory were much less aggressive. Originally, production would be expanded to 328,000 units by 2017, AN reports, with an eye towards a full 400,000 units per year by 2021. With 394,000 rolling out of the Lafayette, IN factory by next year, though, it's clear how keen Subaru is to take advantage of such strong demand. News Source: Automotive News - sub. req.Image Credit: Dave Umberger / Associated Press Earnings/Financials Subaru sales fuji heavy industries