Subaru Expands Its Business in United States: Increases Annual Production at its Indiana Plant

"As their plans for the Chinese market has been abandoned, Subaru now concentrates on its business in the United States, the brand’s biggest market. As per the newly implemented strategy, the company calls for increased output at its Indiana plant and targets to produce around 200,000 units by mid-2014. The automaker has also sraised its U.S. sales target to 380,000 vehicles a year by its 2016 fiscal year. Earlier, Subaru failed to win approval from Chinese authorities to set up a local joint venture with Chery Automobile Co and as a result the automaker had to shift their business from there.

“We will prioritize expanding production in America while we watch the situation in China and consider what to do there when there are some developments,” said Yasuyuki Yoshinaga, president of Fuji Heavy Industries Ltd. He said he still want to make vehicles in China, the world’s biggest auto market. But he no longer is counting on doing it by 2016. Earlier, a mid-term business plan was unveiled to sell 180,000 vehicles in China by the fiscal year ending March 31, 2016. Subaru expected to build 150,000 of those in China. Now the company plans to sell only 100,000 by then — all imports. As the automaker wants to make up its deficit in its global sales goals in North America, its revised target boosts annual North American sales to 410,000 units by the fiscal year ending March 31, 2016. At present, Subaru expects to sell 324,000 vehicles in the United States in the current fiscal year ending March 31, 2013." [Read more]