Report: Subaru considering Indiana for EV production
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Indiana could be the frontrunner for Subaru’s planned electric vehicle production site in the United States, Reuters reported Wednesday.
Subaru CEO Atsushi Osaki told reporters during a meeting in Tokyo that Indiana could become the next location of an EV production site for the company, Reuters reported.
“The time to make a decision is coming close,” Osaki said, according to Reuters.
Subaru already has a long history in Indiana, where it has produced more than 7 million vehicles since opening its plant in Lafayette in 1989. The facility, which is the company’s only plant outside of Japan, produces gasoline-powered Legacy, Outback, Ascent and Crosstrek models.
When asked about a potential deal, an Indiana Economic Development Corp. spokesperson said the agency “can’t confirm or comment on any discussions” and that “all negotiations are confidential.”
The news came while Gov. Eric Holcomb and other state officials were in Japan to meet with U.S. Ambassador Rahm Emanuel, Japanese government officials and private industry leaders.
“What we sought to do on this trip was not just say thank you to our three original equipment manufacturers—Honda, Toyota and Subaru—but also to some other suppliers,” Holcomb told IBJ in a video call Thursday, adding that he was “bullish or confident that good news would come” from the trip.
IBJ talked to Holcomb before learning about the Subaru CEO’s comments.
While there, Holcomb also visited Subaru’s main domestic facility and met with executives of Toyota and Honda, which also have plants in Indiana, Reuters reported.
The Japanese automaker has been producing the Solterra, its first mass-produced electric vehicle, at one of Toyota’s plants in Japan. Subaru plans to launch four new EV models by the end of 2028.
According to Reuters, Osaki said he met with Holcomb in Japan this month, but he wouldn’t provide details about the meeting. Osaki did not say whether the U.S. plans involved building a new factory or expanding existing production lines.
Subaru said in August that it hoped to sell 600,000 battery-powered vehicles per year by 2030, accounting for half of its global sales.
Besides its Lafayette plant, Subaru of America is also planning to open a parts distribution facility at a 1.1-million-square-foot warehouse in Zionsville.
In June, state budget leaders approved $120 million in incentives for an “advanced technology automotive components” facility. The IEDC declined to reveal details about the company, except to say the plant would be located somewhere in north-central Indiana.
State officials have also been actively courting companies to locate their operations in the LEAP Lebanon Innovation and Research District, a planned 9,000-acre or more technology and innovation hub in Boone County. LEAP stands for Limitless Exploration/Advanced Pace.
Eli Lilly and Co. will serve as the anchor tenant of the LEAP District and is investing $3.7 billion in a new drug manufacturing site, a move that’s expected to result in more than 700 jobs. The Indianapolis-based drugmaker said the expansion is needed to keep up with expected growing demand for pharmaceutical products over the next decade.
The LEAP District under development in Boone County represents a shift in the way the state is working to attract companies and create jobs. The change is meant to help Indiana compete for the nation’s biggest high-tech economic development opportunities.