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6218 Cleveland Blvd.
Caldwell, ID 83607

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Subaru Expands Japanese Production

Leave it to Subaru to buck the trend - this is one Japanese automaker that continues to expand production in their home country, despite the strengthening yen. While many other automakers are investing their resources into expansion here in the United States to save money, Subaru is doing just the opposite.


In fact, by the end of this fiscal year, Japanese production will account for 78 percent of their total output - compared to 73 percent last year. This may come as a surprise, especially when you consider that the United States is Subaru's biggest market. But, as a smaller automaker, it's just not a smart financial decision to go about building large factories here. "A large-scale expansion in the U.S., where we build new factory buildings and such, will cost a lot," says CFO Mitsuru Takahashi. "It's not appropriate for us to make sudden, big investments."1


You probably won't notice much of a change here in Caldwell. Production at the company's Indiana plant will stay about the same, with a slight one percent decrease in annual production expected. Total output of models like the Subaru Outback, Legacy, and Tribeca are expected to total just around 169,000 units. Analysts predict that the automaker could expand production to as much as 200,000 units without a substantial investment.


We do know one thing for sure: the new Subaru models available here at Team Mazda Subaru continue to be very popular with Idaho drivers - probably thanks to the standard all-wheel drive and available all weather package for those cold winters!


Stop by to check them out in person at 6218 Cleveland Blvd Caldwell, ID 83607.


Source: 1http://www.bloomberg.com/news/2012-05-24/subaru-made-in-japan-defies-trend-as-fuji-lifts-output.html

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