Subaru production shift in Indiana not due to tariffs, automaker says
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
A recent report that Subaru Canada plans to cease imports of American-made Outback models into Canada has caused concern about the impact on the Subaru of Indiana Automotive plant in Lafayette, which currently produces the vehicles.
However, the automaker noted to Inside INdiana Business on Monday that the Indiana plant was already planning to shift gears on the vehicles it produces.
Automotive News Canada reported last week that Subaru’s Canadian division will cut overall U.S. imports to just 10% by the 2026 model year, and the Outback will not be imported into Canada after that year. It said the move was in response to tariffs levied by the Trump administration earlier this year.
But Subaru announced in May of 2024, long before Trump’s tariffs were announced, that it plans to stop producing both the Outback and Legacy models at the Lafayette plant as it prepares to begin production of both the hybrid and traditional gasoline models of the Forester SUV.
Subaru of Indiana Automotive Vice President Rachel Hazaray, who is also the company’s general counsel, told WLFI-TV last May that the company plans to add about 100 jobs with the addition of the Forester models.
“The Forester, the Crosstrek, and the Ascent, we have some of the top selling Subaru brand vehicles. So we’re really excited for this next era of our plan,” Hazaray said.
The automaker will move production of the Outback to Japan and will phase the Legacy model out entirely.
The 6 million-square-foot Lafayette plant, which employs more than 6,000 people, also produces the Ascent and Crosstrek models.
Correction: This story has been corrected to reflect that Rachel Hazaray is vice president and general counsel at Subaru Indiana Automotive.