News From Terre Haute, Indiana

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May 7, 2013

AP Source: Subaru to expand Indiana plant

DETROIT — Subaru plans to expand its Indiana factory and add workers to build the Impreza small car in 2016, a person briefed on the matter says.

The person spoke on the condition of anonymity because the announcement is scheduled to be Wednesday made in Japan. Currently the factory in Lafayette, Indiana, employs around 3,600 and builds the Legacy and Outback cars and the Tribeca SUV. It also builds the Camry midsize car under contract with Toyota.

The person says hundreds of jobs will be added but the exact number was unknown. Sales of the Impreza have fallen 31 percent this year, due largely to a shortage of models. Ward’s Automotive says Subaru has only enough Imprezas on the ground to supply dealers for 29 days. A 60-day supply is considered optimal.

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