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Subaru celebrates 4-millionth vehicle built in Indiana

Subaru has produced its four-millionth vehicle at its Lafayette, Indiana factory. The Deep Indigo Blue 2014 Outback is pictured above, alongside the very first Subaru to leave the Lafayette facility, a first-generation Legacy. Formally known as Subaru of Indiana Automotive, SIA opened its doors in 1989 and currently produces the Outback, Forester and Tribeca for Subaru, in addition to the Toyota Camry.
The plant, which was originally a joint venture between Subaru and Isuzu, has produced nine different models for four different manufacturers over the years, and is getting ready to add a tenth as Impreza production will be coming to SIA. Subaru announced plans to move Impreza production to Indiana when it made a $400-million investment in the facility earlier this year. As production continues, the Lafayette Journal-Courier reports that SIA will produce another million units by the end of 2017.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Subaru builds 3 millionth car in America

Subaru announced August 1 that its Indiana factory completed the 3 millionth American-built Subaru, a Lapis Blue Pearl Outback. The company reached the milestone July 28. Subaru has been building cars at its factory in Lafayette, IN, since 1989. The factory opened as a joint venture with Isuzu, but Subaru eventually took full ownership. Subaru first built North American Legacy sedans and wagons at the factory, followed by the Outback, Baja, and Tribeca. Subaru plans to upgrade the Indiana facility to handle increased demand. The company will double capacity from 218,000 units to 436,000 by March 2019. Subaru will add Impreza production toward the end of the year, and begin production of a three-row crossover in 2018. Related Video: