As part of a collaborative agreement that includes partnering in developing new hybrids, Toyota and Fuji Heavy Industries announced today that the Subaru Indiana Automotive (SIA) plant will begin producing the Toyota Camry beginning in 2007. FHI is the parent of Subaru, and Toyota has an 8.7% position in FHI which it purchased from GM in 2005.
About $230 million will be invested to install Camry manufacturing processes in an existing SIA line capable of producing about 100,000 vehicles annually.
With this additional capacity and other expansions underway, Toyota will have North American annual production capacity of about 2 million cars and trucks by 2008.
Camry production in Indiana will replace imports of the model from Japan. Not only does the partnership with SIA provide Toyota with more of the popular car, but it allows the automaker to shift more production of the Camry out of Japan, opening an opportunity for increasing Prius production.
Currently, SIA builds the Subaru B9 Tribeca, Outback, Legacy and Baja. SIA produced about 120,000 Subarus in 2005. The Subaru B9 Tribeca will move to the production line where the Outback, Legacy and Baja are currently built to make room for the Camry.