US facility · Autos
Subaru to invest $158 million in its Indiana plant, adding transmissions and a parts center
- Company
- Subaru Corporation (Tokyo)
- Project
- Subaru of Indiana Automotive, Lafayette, Indiana
- Value
- $158M
- Status
- Announced. Up to 350 jobs were planned by the end of 2023.
- Date
- 2020-02-26
Subaru's only US car plant said it would spend $158 million to build a new service parts facility on its 820-acre campus and add a transmission assembly shop, creating up to 350 jobs by the end of 2023. Indiana offered up to $2.65 million in tax credits and $350,000 in training grants, paid only as jobs are added.
Why it matters
Making transmissions in Indiana instead of shipping them from Japan raised the US content of Subaru's cars. The plant's suppliers include Japanese parts makers that grew around it, such as ELSA in Elwood.
The plant
Subaru of Indiana Automotive in Lafayette is a 4.7-million-square-foot plant with more than 6,000 workers. It builds the Legacy, Impreza, Outback and Ascent, about 410,000 vehicles a year. Its output had tripled over the previous ten years, and Subaru had invested more than $2.2 billion there.
Earlier steps
In 2017 the plant added $140 million in equipment and 200 jobs to start building the Ascent crossover, and in 2019 it opened a training center on the campus. Scott Brand, a senior vice president at the plant, said the new projects would help it meet rising customer demand. The city of Lafayette and Tippecanoe County also offered incentives.
Sources
Kakehashi M&A News home
