Subaru is looking to increase its vehicle production in order to meet the demand in the U.S. markets. This is why it has plans to invest $140 million so that the annual production of the vehicles touches 100,000 to meet the demands of the U.S. market. It is investing the amount in the Indiana plant to boost the vehicle production. In two years time, the Indiana plant will be ready to offer jobs for 1,200 people.
This new expansion plan comes just one and half years after the $400 million expansion. The new investment plan news was made public through an announcement made by the executive Vice President of Subaru, Tom Easter day on Monday. This expansion plan will help in boosting the production of Subaru Legacy, Outback and Impreza models which will see an increase of 100,000 vehicles every year to about 390,000 vehicles a year.
The process of hiring new employees to fill the 1200 jobs has already begun from the side of Subaru of Indiana Automotive Inc. This will help the company to meet its set production goals and it aims at completing the process by 2017. The average wage that will be offered to workers will be $17 an hour. The Subaru Lafayette factory production capacity increase and expansion news come just after Subaru has recorded sales of 52,697 vehicles in the United States in the month of August this year.
The parent company, Fuji Heavy Industries in Japan, looks confident about the prospects of Subaru in the U.S. and has decided to invest more money in the Lafayette plant. A total of 3,800 people are at present working in the Indiana plant that builds the Subaru Legacy sedans and Outback SUVs. The Impreza sedan production will commence by the end of this year and this is why the company had invested $400 million that was announced in 2013.
The sales of Subaru vehicles have seen a steady climb since 2011 as the company was able to offer better gas mileage for all its small all wheel drive sports utility vehicles. A total of 514,000 vehicles were sold in 2014 and the sales have gone up by 12.5% in 2015 so far.
The Indian Governor, Mike Pence, had joined the Lafayette area officials as well as Subaru during the expansion announcement made by the company on Monday. Pence said that the Japanese company has extraordinary confidence in its operation in the U.S. and also on the people of Indiana.