Subaru to Stop Camry Production in Indiana
Subaru of Indiana Automotive Inc. did not renew of a five-year contract to build vehicles for Toyota Motor Corp., and it will stop building Toyota Camry sedans by 2017. Subaru currently has plans to boost production of its own vehicles from 170,000 vehicles to 300,000 by the end of 2016. Executive vice president of Subaru of Indiana Automotive Inc. Tom Easterday told the Louisville Journal & Courier that "based on changes in Toyota's production plans, they have decided that the award-winning Camry production contract will not be renewed." Toyota spokesmen have decided not to comment on the matter. Earlier this year, Subaru was reported as saying that the new Impreza will be produced at the Indiana factory, which would save the jobs of those who currently work on the Toyota Camry. As production for the sedan ends in 2016, Subaru will not start building the Impreza until that time. Easterday went on to say that "there are future projects that Subaru has in mind for our plant that should add several hundred jobs in the future, possibly by 2018." As Subaru needs more capacity to produce its own vehicles, stopping production on the Toyota Camry when the agreement ends will free up capacity for 400,000 Subaru-badged vehicles to be produced. The automaker hopes to increase sales to 500,000 by 2016, while this year's estimate is at 420,000 units. Discontinuing production of the Camry seems to be a logical step forward for Subaru, and if it can save the jobs of those who help produce Toyota's award-winning sedan, it's a win. Source: Automotive News (Subscription Required)
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