The plant is expected to build Subaru Outback, Subaru Legacy and Toyota Camry vehicles, which is likely to meet the growing demand for Subaru vehicles in North America.
The news was announced today at a joint press conference between Subaru and Indiana Gov. Mike Pence. "We greatly appreciate the support of state and local government for this significant economic development project".
"Subaru has kept its promise to the people of Indiana now for more than a quarter of a century, and this is one more statement of them fulfilling that promise", Mike Pence said.
The factory now employs more than 3,800 workers and produces about 300,000 vehicles per year, according to a press release.
The $140 million investment announced Monday is on top of the $400 million expansion already underway that will begin Subaru Impreza production at the plant by the end of 2016.
Last week, Pence visited Subaru officials as part of an economic trade mission to Japan. The existing facility in Lafayette will get new machinery and equipment to handle the production increase.
Governor's Office Gov. Pence joined Subaru executives on Monday to announce expanded operations in Indiana
A Japanese automobile company is getting set to expand its business in Indiana. The facility has built more than 4 million vehicles, including more than 2 million Subaru, since the start of production in 1989.
Lafayette Mayor Tony Roswarski said this marks another significant investment in our growing community.
The Indiana Economic Development Corp. offered Subaru up to $7.65 million in conditional tax credits and up to $250,000 in training grants based on the company's job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city and the county may consider additional incentives.
Yoshinaga did not specify how the new SUV would boost production at the plant or how many jobs could be added.
"That's certainly reflective of a pro-business environment", Pence says, "but that also reflects something deeper - a common foundation in work ethic and a history in manufacturing excellence that makes that kind of investment possible".