Subaru is close to finalising a plan to expand its production capacity in the US, the company's biggest market. According to a Bloomberg report the company the Subaru dealers in the US have been suffering from tight supply and the company is looking to address this with further US-based production investment. Chief executive officer (CEO) Yasuyuki Yoshinaga told reporters in Tokyo today. He said the carmaker will probably announce the plan next month when it reports annual earnings. He added, "Our dealers in the U.S. are waiting for an answer on when this situation of not having enough cars will be solved, so we hope to provide an answer soon".
Significance: Subaru, which is opened by Japanese industrial conglomerate Fuji Heavy, currently operates a plant in Lafayette, Indiana, as is Subaru's only manufacturing plant outside of Japan. The company manufacturers the Outback wagon, Legacy sedan and Tribeca SUVs at the plant, which also manufacturers Camry sedans for Toyota Motor Corp. under contract. At the beginning of April Subaru's U.S. dealers had an average of 36 days of supply – down two days from March 1, according to the Automotive News Data Center. This is significantly lower than the average of the other Japanese OEMs operating in the US market, which carry between 48 and 60 days worth of stock. It remains to be seen whether Subaru will invest in a completely new plant or look to extend the Lafayette facility.
