Subaru is one of the top automobile manufacturers in Japan, well-known for its durable and high-performing vehicles. While it began as a small Japanese company, today it has a global presence with manufacturing facilities around the world. One of the significant milestones of the company is its expansion into the United States, where it has established several manufacturing plants. In this article, we’ll take a look at the history of Subaru in the US, the reasons for its decision to build manufacturing plants here, and the impact it has had on the American automotive industry.
The History of Subaru in the US
Subaru began exporting its vehicles to the United States in the late 1960s and quickly established a reputation for building reliable, all-wheel-drive vehicles that were ideal for the harsh winter climates of the northern US. Despite its early success, Subaru initially relied on importing vehicles from Japan to meet the needs of the American market.
However, as demand for its vehicles increased, Subaru decided to establish a production presence in the US. The first step toward that goal was the construction of a small assembly plant in Lafayette, Indiana in 1989. This plant was established to produce the Legacy and Outback models, and it would prove to be the first of many manufacturing facilities that Subaru would establish in the US.
Reasons for Establishing Manufacturing Plants in the US
There were several reasons why Subaru decided to build manufacturing plants in the US. One of the primary reasons was to reduce its reliance on exporting vehicles from Japan. By establishing local manufacturing plants, Subaru could produce vehicles that were better suited to the local market’s needs and reduce the impact of fluctuations in currency exchange rates.
Another reason was to reduce costs associated with importing vehicles from Japan. By sourcing components from local suppliers and assembling vehicles in the US, Subaru could reduce transportation costs and take advantage of tax incentives and other benefits offered by state and local governments.
Finally, and perhaps most importantly, establishing local manufacturing plants allowed Subaru to create jobs in the US, supporting the local economy and establishing a strong presence in the American automotive industry.
Timeline of Subaru’s US Manufacturing Plants
Subaru has established several manufacturing plants in the US over the years, with each one playing a crucial role in producing some of the company’s most popular models. Here is a brief timeline of Subaru’s US manufacturing plants:
1989 – Lafayette, Indiana: The first US plant was established to produce the Legacy and Outback models.
2001 – Camden, New Jersey: This plant was built to produce the Subaru Baja and Legacy models.
2003 – Lafayette, Indiana: A new plant was added to produce the Subaru Tribeca crossover.
2016 – Lafayette, Indiana: The latest and largest Subaru plant was built to produce the Impreza and Ascent models.
Each of these plants has played a critical role in supporting Subaru’s growth in the US, providing jobs and producing vehicles that are tailored to the American consumer’s needs.
The Impact of Subaru’s US Manufacturing Plants
Subaru’s decision to build manufacturing plants in the US has had a significant impact on the American automotive industry. One of the most notable effects has been the creation of jobs in the US. Today, Subaru employs over 10,000 workers in the US, including workers at its manufacturing plants and regional offices.
Another impact has been the increased competitiveness of Subaru in the American market. By producing vehicles locally, Subaru can reduce costs and offer more competitive prices on its vehicles. This has allowed the company to gain market share in the US and establish itself as a top player in the American automotive industry.
Finally, the decision to build manufacturing plants in the US has helped to strengthen the relationship between Japan and the US. By investing in the US economy and creating jobs here, Subaru has demonstrated its commitment to the American market while also providing benefits to the Japanese economy.
Q: When did Subaru first export vehicles to the US?
A: Subaru began exporting vehicles to the US in the late 1960s.
Q: How many manufacturing plants does Subaru have in the US?
A: Subaru has four manufacturing plants in the US.
Q: What was the first model produced at Subaru’s Lafayette, Indiana plant?
A: The first model produced at Subaru’s Lafayette, Indiana plant was the Legacy and Outback models.
Subaru’s decision to build manufacturing plants in the US has had a significant impact on the American automotive industry. By creating local jobs, reducing costs, and fostering closer ties between Japan and the US, Subaru has established a strong presence in the American market while helping to support the local economy. As Subaru continues to grow and expand its operations in the US, we can look forward to seeing more high-quality, all-wheel-drive vehicles that are tailor-made for American drivers.