LAFAYETTE, Ind. - Subaru will invest $400 million to expand its plant in Lafayette, hiring 900 new workers by the end of 2016.
The expansion will enable Subaru to start building the Impreza at the plant, a car that had previously only been built in Japan.
"The Subaru's success is attributable to many, many factors, including a focus on designing vehicles for the North American market, excellent marketing and sales efforts, and, of course, the outstanding quality, safety and reliability that are built into every Subaru, particularly by our associates here at SIA," said Subaru Vice President Tom Easterday.
Easterday said the momentum of four straight years of record sales in the United States was a big factor in the expansion decision.
The company is adding the Impreza model to the three other lines already produced in Indiana.
"We are proud that Indiana will be home to the continued investment of a world-class company like Subaru," Gov. Mike Pence said at Wednesday's announcement. "With our competitive tax climate, strong workforce and unmatched infrastructure, the world recognizes that the Hoosier State is open for business. With this announcement of more than $400 million invested in this community and 900 new jobs, it proves again Indiana's economy is on the move and companies like Subaru of Indiana are the reason why."
The expansion of the facility will bring its annual capacity from approximately 300,000 vehicles to about 400,000 vehicles.
The Indiana Economic Development Corporation has offered Subaru of Indiana Automotive Inc. up to $9,500,000 in conditional tax credits and up to $500,000 in training grants based on the company's job creation plans.
More than 3,600 people work at the company's Lafayette campus, with more than 600 workers added in the last four years. The plan currently produces the Subaru Outback, Legacy and Tribeca.
"By saying Yes to Indiana again, Subaru of Indiana proves that Indiana is the best place in America to start a business, grow a business or get a job," Pence said.
Production of the Impreza is set to being in 2016.