March 14, 2006

Subaru to build Toyota Camry in the U.S.

Lafayette, Indiana – As part of a collaborative agreement that includes developing new hybrids, Toyota and Fuji Heavy Industries (FHI) have announced that Subaru’s Indiana Automotive plant (SIA) will begin producing the Toyota Camry, starting in 2007. Toyota has an 8.7 per cent stake in FHI, which is the parent company of Subaru.

About US$230 million will be invested to install the Camry manufacturing process in an existing SIA line, with the capability of producing about 100,000 vehicles per year. The production will replace imports of the model from Japan, which will open Japanese facilities to the opportunity of increasing Prius production. The Camry is also built at Toyota Motor Manufacturing’s plant in Kentucky.

The Indiana plant currently builds the Subaru B9 Tribeca, Outback, Legacy and Baja; it produced about 120,000 vehicles in 2005. The B9 Tribeca will move to another line to make room for Camry production. The Camry is expected to add about 1,000 jobs; Toyota will provide training on the Camry processes and will source and procure parts and materials. With this and other expansions, Toyota is expected to have a North American production of 2 million cars and trucks by 2008.

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