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Subaru to invest $400 million in Lafayette, add 900 jobs

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LAFAYETTE – Subaru announced Wednesday that it will add 900 jobs at its Lafayette campus.

Those workers will build the company’s Impreza model, a small car currently produced at Subaru facilities in Japan.

Subaru of Indiana Automotive (SIA) will invest between $400 and $450 million to expand annual production capacity by 100,000 vehicles. Plans call for construction that will expand SIA’s total footprint on its 832-acre Lafayette site by an additional 500,000 square feet. The project will also include the addition of new equipment and other changes that will streamline the production process.

Construction is set to begin this fall with a targeted completion date of 2016.

Gov. Mike Pence joined Lafayette city leaders and Subaru officials for Wednesday’s announcement. Pence said he welcomed the investment of a world-class company like Subaru.

“With our competitive tax climate, strong workforce and unmatched infrastructure, the world recognizes that the Hoosier State is open for business,” Pence said.

Subaru has produced more than 3.9 million vehicles since its incorporation in Indiana in 1987. During the fiscal year that ended in March, the facility produced a company record 271,583 vehicles. Models produced by SIA include Outback, Legacy and Tribeca. The Impreza becomes the latest addition to the company’s lineup. In 2012, more than half of all Subarus sold in North America were produced at SIA.

More than 3,600 Hoosiers work for Subaru’s Lafayette campus. Wednesday’s announcement is expected to create up to 900 additional jobs by 2016.

The Indiana Economic Development Corporation offered Subaru up to $9.5 million in conditional tax credits and up to $500,000 in training grants. The company can’t claim those incentives until it makes good on its promises for job creation.