Fuji Heavy to double U.S. Subaru capacity - Nikkei

Reuters

Oct 23 (Reuters) - Fuji Heavy Industries Ltd plansto double the production capacity of Subaru cars in the UnitedStates to cater to growing demand for the sport utility vehiclein the North American market, the Nikkei reported.

Fuji Heavy's subsidiary Subaru of Indiana Automotive Incproduces 270,000 cars a year at a plant in the U.S. state ofIndiana, the business daily said.

The plant makes 170,000 Subaru Forester SUVs and contractmanufactures 100,000 Camry midrange sedans annually for ToyotaMotor Corp, according to the Nikkei.

The U.S. accounts for 50 percent of Fuji Heavy's global carsales.

The company will invest about 40 billion yen ($407.5million) to increase the plant's annual capacity to 370,000 carsby 2016, the newspaper reported.

Fuji Heavy will soon begin talks with Toyota to end contractmanufacturing of the Camry and will produce only Subaru vehiclesat the plant, the business daily said.

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