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Subaru investing $400 million for Impreza production in Indiana

As a part of a goal to increase its US sales tally up to 500,000 annual units by the end of the decade, Subaru is investing $400 million in its Lafayette, IN assembly plant in order to start building the Impreza in 2016. According to Automotive News, about half of that investment will be for a new paint plant while another big chunk will be used to extend the assembly line to allow for the increased capacity.
Currently, Subaru's Lafayette plant is responsible for building about 200,000 Legacy, Outback and Tribeca models each year (not including around 100,000 Toyota Camry sedans), but Subaru-specific output will be increased to 300,000 units, requiring an additional 900 new hires as well. Although a previous report suggested the Forester and Impreza would be moving Stateside, this AN article only mentions the hatchback and sedan versions of the Impreza being added to Lafayette - and no mention of the closely related XV Crosstrek.

Subaru Levorg STI Sport should get us closer to the future WRX

At the Tokyo Motor Show, Subaru showed a "prototype" of the next-generation Levorg, itself a Japanese-market wagon derivative of the Subaru WRX sedan. While it gave us a good idea of what to expect from the next WRX, the Levorg STI Sport that will be shown at Tokyo Auto Salon in January should give us an even better look at the hot Subaru we'll get. This is based on the fact that among current Levorg trims, the STI Sport has a front bumper fascia that's more aggressive and that echoes the design of the WRX, whereas the standard trim is more mellow. So far, Subaru has only released a teaser video of the sportier Levorg. It shows STI badging on the back of the car and on the exhaust tips. There's also a glimpse of the tachometer that shows a redline of just over 6,000 rpm. Since that's lower than the WRX's turbo 2.0-liter engine's 6,500-rpm redline, this is probably the new 1.8-liter turbocharged engine Subaru announced will replace the current base turbo 1.6. It will probably make at least 170 horsepower to match the outgoing model. Based on the current STI Sport engine offerings, this should be the base engine, while the WRX's turbocharged FA20 will be an option. The full reveal of the Levorg STI Sport will come on January 10. Expect further details on mechanical changes as well, which will hopefully include information on a more powerful engine that could appear in the WRX. We wouldn't be surprised if it ended up using a slightly updated version of the current WRX's 2.0-liter FA20 engine, since even the WRX STI is expected to get a more powerful - probably over 300 horsepower - version of that same engine.

Subaru CEO expects record U.S. sales in 2020 despite market slowdown

TOKYO  - Subaru expects its U.S. vehicle sales to rise to a record high in 2020, as demand for its crossover models helps it buck the trend of slowing car sales in the Japanese automaker's biggest market. The company has been growing rapidly in the United States, the world's No. 2 auto market, roughly doubling the number of vehicles sold over the past six years, thanks in part to a ramp-up in local production capacity and a marketing strategy focused mainly on affluent and liberal-minded consumers. Japan's smallest automaker said that ongoing U.S. demand for its Forester and Outback models would likely boost overall sales in the country to 720,000 to 730,000 units next year, up by as much as 4.3% from the around 700,000 vehicles it expects to sell by the end of this year. "We expect the U.S. market to slow only slightly next year, so we're planning to see more growth in our sales. We think we can achieve this," CEO Tomomi Nakamura told reporters in Tokyo. He added that he saw room for the automaker to expand its share of the SUV market, which stands at around 7% at the moment, given that Subaru's SUV models outsell its Legacy and Impreza sedan models. "If competition in the U.S. SUV market continues, that segment will keep growing even as the overall market slows," he said. U.S. sales account for around 65% of Subaru's total global sales of around 1 million units. By the end of November, sales of the Forester this year had climbed 6.4% from a year ago, while sales of the Outback, its best-selling model in the country, were up 0.9%. However, the rapid growth in the country has coincided with a jump in global quality-related issues which has sapped profitability in the past year or so. (Reporting by Maki Shiraki; writing by Naomi Tajitsu; Editing by Kirsten Donovan) Earnings/Financials Subaru Crossover SUV