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Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.

Subaru PHEV possible next year, pure EV in 2021

Despite what its larger competitors are doing, Subaru has avoided the draw to create its own electric vehicle. Tighter emissions regulations around the globe, though, have the company reconsidering its options. The company is pouring a record amount of money into research and development, according to a report from Bloomberg, and that includes EV technology. Also, Subaru could introduce a plug-in hybrid as early as next year, and an all-electric vehicle by 2021. Subaru CEO Yasuyuki Yoshinaga tells Bloomberg that the company doesn't need a dedicated platform for battery-powered cars, and will likely put plugs into existing models. This way, the automaker doesn't have to partner with another company beyond finding a supplier for the motor and battery, and can extract the full value out of its current nameplates. A previous report suggests that Subaru would electrify the Outback or the Forester, but Yoshinaga doesn't confirm this in his interview with Bloomberg. Instead he uses a model that recently ditched its hybrid version in a hypothetical example: "If there's already an attractive Subaru model, for example the XV crossover, and if a customer in Beijing wants one but is only allowed to buy an electric vehicle, if there's no electric version then he can't buy it. Providing the choice of an EV means the customer can still desire the same Subaru." As for sourcing the battery, Yoshinaga says that a decision would have to come in about a year, and Panasonic and Samsung are possibilities. In addition to EVs, Subaru will use some of its $1.2 billion in funds set aside for R&D for the year ending in March, 2018 on driver assist technology, autonomous driving, and connected vehicles. Related Video:

Plans for 7-seat Subaru Tribeca replacement becoming clearer

Subaru is going to have its hands full at the Tokyo Motor Show next week, but while the Cross Sport Design Concept is expected to preview a Tribeca-replacing crossover, this new model could still be at least two years from production. It has already been confirmed that production of the Tribeca will end early next year, but in speaking with Yasuyuki Yoshinaga, the president of Subaru's parent Fuji Heavy Industries, Automotive News is reporting that there will be a lengthy gap between the Tribeca and its eventual replacement.
The next-gen three-row crossover wasn't included in an annual production capacity goal of 500,000 units expected in the US by the end of 2016, so it's likely that we won't see this much-needed CUV until 2017. While the details of this new model aren't known, Yoshinaga told AN that it will be "completely different" from the Tribeca. As we heard back in February, we do expect this seven-passenger crossover to grow in size in order to offer a larger cabin with more third-row space.
Automotive News even mentions that the Tribeca replacement could be based on the existing Subaru Exiga from the Japanese market. That three-row vehicle splits the difference between a minivan and wagon, with swinging doors instead of sliders, and a tall greenhouse.