Subaru plant in Indiana to stop building Camry in 2017


* Subaru exec says Toyota decision a surprise-reports

* Fuji Heavy says plans to increase output of Subaru modelsat plant

DETROIT/TOKYO, Nov 15 (Reuters) - Fuji Heavy Industries, the makers of Subaru cars, said on Friday it wouldstop assembling Toyota Motor Corp's Camry at itsIndiana plant and use the spare capacity to build its own cars.

Fuji Heavy received notice from its biggest shareholder thatit wanted to end annual production of 100,000 Camry models atthe plant, which also builds 170,000 Subaru cars a year, aspokesman for Fuji Heavy said.

The end of production for Toyota in Indiana in 2017 wasfirst reported by the Louisville Journal-Courier and localtelevision station WLFI, citing Tom Easterday, executive vicepresident of Subaru of Indiana.

The plant has has been making the Camry since 2007.

Easterday said the announcement came as a surprise and thatthe plant had been told in the spring that it would build thenext-generation Camry in a pact that has helped Toyota head offrivals in the competitive U.S. midsize sedan market, accordingto the reports.

Fuji Heavy may use the idle capacity to raise output ofSubaru models. The company had earlier announced it planned toraise production to 300,000 vehicles a year at the factory.

Fuji Heavy this year expects sales of the Subaru Forester tojump 25 percent to 420,000 vehicles.

Toyota which holds a 16.5 percent stake in Fuji Heavy,declined to comment, saying the company would not discuss futureproduct plans. Japan's leading carmaker also builds the Camry,the best-selling U.S. car, at its factory in Georgetown,Kentucky.

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