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Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.

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.

2015 Subaru Legacy

Subaru has a problem on its six-starred hands, but you wouldn't know it at first glance. Sales are up; in fact, the Japanese automaker has recorded 28-straight months of increased sales in the United States, leading to the best first-quarter Subaru has ever recorded, and 2014 will almost assuredly be the seventh straight year it has posted improvements. So, what's wrong? The answer is simple, though clearly complicated to resolve. Sedans - specifically, midsize examples - have proven a tough nut for Subaru to crack.
The vast majority of those impressive sales statistics have come from just a few models, namely the Forester, Outback and XV Crosstrek. The Impreza continues to sell at a respectable pace, but it's telling that the XV, after just three years on the market, is already Subaru's third-best-selling nameplate, outpacing the aforementioned Impreza (on which it's based), its high-performance WRX sibling and the Legacy, which is now entering its sixth generation, having been first introduced way back in 1989. It's that last model we're examining today.
Despite the fact that the Legacy plays in a hotly contested market segment that includes such stalwart sales champions as the Toyota Camry, Honda Accord, Ford Fusion and Nissan Altima, Subaru's competitor registers as a barely visible blip on the radars of new-car buyers. Graphically illustrated another way, Toyota sells 17 Camry sedans for every new Legacy that Subaru moves.