In an effort to build more things where they’re needed, Subaru of Indiana Automotive will spend $158 million expanding its Lafayette plant. Construction begins this summer.
The cash covers a standalone service parts facility and an add-on to the existing plant, home to the Ascent, Outback, Legacy, and Impreza. That addition will see the automaker’s only non-Japanese facility build the transmissions needed to serve a growing market.
As you’ve read here, Subaru expects to spend 2020 selling.
“We’re proud to continue investing in Indiana,” said Scott Brand, SIA’s senior VP of administration and quality, in a statement. “We also appreciate the tremendous support these plans have received from the state, Tippecanoe County and the city of Lafayette.”
The addition is expected to create 350 jobs in the Hoosier state.
Continuing a trend of huge yearly sales climbs, Subaru’s U.S. volume topped 700,000 vehicles in 2019 — a volume bump of nearly 3 percent over 2018, and a 223-percent increase from a decade prior. This year, Subaru again hopes to top its latest record in its largest market.
Built in 1989, the Lafayette plant has added models and jobs over the years; its workforce now stands at roughly 6,000. Plant output for 2020 is projected at 410,000 vehicles.
Bringing parts and transmissions to the U.S. is part of Subaru’s effort to silence the gripes about supply issues and quality that plagued the automaker over the past couple of years. Given its relatively small production footprint and growing North American demand, the automaker quickly sells most of the vehicles it makes. There isn’t much room for error when problems crop up in the supply chain.
[Image: Matthew Guy/TTAC]

Bravo!
Wish they’d add optional ‘real’ transmissions and not the only pathetic CVT.
Agreed. I don’t consider CVTs to be real transmissions. The only CVTs I’ve driven were in a couple of newer Corollas (a 2018 and a 2020, both rentals). If anyone can build one that lasts it would probably be Toyota, but I don’t like theirs. Who builds Toyota’s CVTs, anway? Aisin?
” I don’t consider CVTs to be real transmissions. ”
Torture devices maybe? CVTs sort of say “yeah, I know you’re foot is to the floor, and yes the engine is at redline and the rear camera shows a semi about to hit us, but we’re going to do this at my pace”
“Slow down, you young whippersnapper!”
Pretty sure the T stands for transmission and it doesn’t directly couple the crankshaft to the differential so yeah, it’s a transmission.
Nothing wrong with CVT. When designed properly. Honda and Subaru have proper steps in the programming and simulate a geared trans.
CVT. gives you 2-5 MPG increase over geared one.
Let s save the outrage for when it s truly needed.
I drive a Honda Accord with the six speed manual. My wife has a CRV with the CVT. I like it better than most automatics I driven as rentals lately. Even “real” automatics. Always seem to wait to down shift.
A properly designed one wouldn’t need the simulated steps. It would just stay in the powerband without rubber banding. The steps are a crutch to hide poor design and hurt efficiency.