Subaru expands Indiana assembly plant by 40%

Subaru will increase its production capacity by 40 percent in its Lafayette, Indiana, assembly plant to meet the growing demand for the newly redesigned Legacy sedan and Outback wagon.

First quarter sales of the two cars in the U.S. more than doubled from last year, with the Outback reaching 19,275 and the Legacy hitting 8,550 sales, the Automotive News has reported.

Fuji Heavy Industries, maker of the Subaru brand, said it plans to produce 140,000 vehicles in the Indiana plant, which currently churns out 100,000 cars a year.

Representatives did not say how the plant will meet the new demand, but Automotive News implied it may draw from capacity currently being used to manufacture Toyota vehicles. The plant has a separate line with a capacity of 100,000 units for the Toyota Camry.

In 2009, Subaru sold about 217,000 vehicles, and the boost in production should increase this year’s figure to at least 230,000, the news provider added.