Subaru sales are still hot in the States, but now there’s word that the company may be backing out of a decision to start building one of its popular models in Indiana.
Reuters reported last Thursday that Subaru has reversed its plan to start producing the Impreza-based XV Crosstrek at its Lafayette, Ind. assembly plant. The company announced in 2013 a $400 million expansion and the addition of 900 new jobs to accommodate models derived from the Impreza, such as the Crosstrek, which is now the company’s third-best seller in the U.S.
The move was followed in May by the announcement Subaru would cease producing the Toyota Camry at the Indiana plant after 2016. The Indiana plant currently assembles the Subaru Legacy and Outback. There’s no indication from Subaru’s parent, Fuji Heavy Industries, that the company is changing course on the plant’s expansion.
Reuters cites moves by other automakers such as Toyota and Nissan to return more production from North America to Japan because of the weaker yen.
Subaru may have its own plans for the 65,000-unit capacity freed up by keeping the Crosstrek in Japan, such as finally getting a competitive three-row crossover to follow up the now-dead Tribeca.
At this point, though, it doesn’t matter where Subarus are made. What matters is if they can make enough to satisfy the still-growing demand in the U.S.
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