Umair Gaines
Subaru and Toyota have a long-standing partnership that has resulted in the development of several electric vehicles. Subaru's electric vehicles are manufactured in both Japan and the United States, with its only overseas plant located in Lafayette, Indiana. This plant, known as Subaru of Indiana Automotive (SIA), is the brand's largest manufacturing site, spanning 820 acres. In Japan, Subaru operates three plants in Gunma Prefecture, with its main plant, Subaru-chō, located about two hours north of Tokyo. The Yajima plant, which builds larger Subarus such as the Legacy and Outback, is also situated in Gunma Prefecture. The partnership between Subaru and Toyota has allowed both companies to save resources on research and development, and their collaboration has resulted in the creation of electric SUV models such as the Subaru Solterra and Toyota bZ4X.
| Characteristics | Values |
|---|---|
| Number of Subaru plants in Japan | 4 |
| Location of Subaru plants in Japan | Ōta, Gunma Prefecture |
| Subaru's main plant in Japan | Subaru-chō |
| Floor space of Subaru-chō | 82 acres |
| Vehicles manufactured at Subaru-chō | Impreza, WRX, Crosstrek, Levorg wagon, Toyota GR86, Subaru BRZ |
| Number of employees at Subaru-chō | 4,500 |
| Second-largest Subaru plant in Japan | Yajima Plant |
| Vehicles manufactured at Yajima Plant | Legacy, Forester, Outback, Impreza, XVs |
| Number of employees at Yajima Plant | 3,000 |
| Third-largest Subaru plant in Japan | Oizumi Plant, Gunma Prefecture |
| Vehicles manufactured at Oizumi Plant | Engines and transmissions |
| Subaru's overseas manufacturing facility | Lafayette, Indiana, USA |
| Vehicles manufactured at Lafayette, Indiana | Ascent, Outback, Crosstrek, Legacy, Impreza |
| Number of employees at Lafayette, Indiana | 5,900 |
| Toyota-Subaru electric SUV models | Solterra, bZ4X |
| Location of Toyota-Subaru electric SUV model manufacturing | Motomachi assembly plant near Toyota City, Aichi |
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What You'll Learn
Subaru's electric plant in Lafayette, Indiana
Subaru has a major manufacturing facility in Lafayette, Indiana, called Subaru of Indiana Automotive, Inc. (SIA). The Lafayette plant is Subaru's only overseas plant and is capable of producing over 300,000 vehicles per year. The plant manufactures popular models such as the Outback, Legacy, Impreza, Tribeca, and Baja for the North American market.
The Lafayette plant spans 820 acres and has also produced several hundred thousand Toyota Camrys, as well as the first-generation Honda Passport. The plant has achieved recognition for its environmental initiatives and was the first auto assembly plant to achieve zero-landfill status. It has also been designated as a wildlife habitat, coexisting peacefully with the surrounding wildlife.
Subaru has a well-established partnership with Toyota, and their collaboration has resulted in the development of several sports cars, including the BRZ/86 and the GR86. The companies have also jointly developed electric SUV models, including the Subaru Solterra and Toyota bZ4X. Subaru has chosen Toyota to build its next three electric vehicles, with a planned release by the end of 2026.
The Lafayette plant has experienced increased production volume due to the rising popularity of Subaru vehicles in the United States. For the 2020-2021 fiscal year, the plant expected to produce 410,000 vehicles. This expansion in production capacity is aligned with Subaru's strategic plan to meet the growing demand in North American markets.
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Subaru's main plant in Japan
Subaru has four plants in Japan, all located in the Gunma Prefecture, about a two-hour drive from Tokyo. Its main plant is the Subaru-chō location, which is a sprawling set of facilities that span 82 acres. Subaru-chō is the oldest Subaru plant.
At this location, Subaru builds the Impreza, WRX, Crosstrek, and Levorg wagon. The Toyota GR86 and Subaru BRZ are also built here. There are over 4,500 employees at this location. Just a few blocks south of the Subaru-chō plant is the Yajima plant, which builds the Legacy, Forester, and Outback, as well as more Imprezas and XVs. There are over 3,000 workers at this location, producing some of the most popular offerings from Subaru. The Yajima Plant is where all current Subaru cars are built.
The Ota North plant is the oldest Subaru factory and is not being used to manufacture vehicles. The Oizumi Plant in Oizumi, Gunma Prefecture, focuses on engines and transmissions. Subaru's only overseas plant is located in Lafayette, Indiana, United States.
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Toyota's stake in Subaru
Subaru has four plants in Japan, located in the Gunma Prefecture, about two hours from Tokyo. Its main plant is in Subaru-chō, where it builds the Impreza, WRX, Crosstrek, and Levorg wagon, as well as the Toyota GR86 and Subaru BRZ. The Yajima plant, which builds the Legacy, Forester, and Outback, is just a few blocks south. Subaru's overseas manufacturing facility is in Lafayette, Indiana, called Subaru of Indiana Automotive, Inc. This plant has also manufactured the Toyota Camry.
Toyota has a stake in Subaru, with their partnership becoming more intense as they enter the electric vehicle market. In the early 2000s, Toyota bought 8.7% of FHI stock, previously owned by GM. This increased to 16.5% in July 2008. Toyota has a 20% stake in Subaru as of 2024. This partnership has resulted in the development of the Toyota Camry, built in Subaru's Indiana plant, and the Subaru BRZ, sold as the Scion FR-S until 2018, when it was renamed the Toyota 86.
Toyota and Subaru have collaborated on several projects, including the Subaru Solterra/Toyota bZ4X electric SUVs. By the end of 2026, Subaru plans to offer four EV SUV models, with three of them being built in partnership with Toyota. This includes one model built at Subaru's Yajima factory and another at a Toyota factory in the US. The partnership will also see the development of an all-electric, all-wheel-drive vehicle for release around 2030.
Subaru's decision to partner with Toyota for its electric vehicles is strategic. Subaru CEO Atsushi Osaki has stated that the partnership will help minimise risk in the electric vehicle market, which is challenging to predict. Additionally, Subaru often faces production constraints at its US factory in Indiana, whereas Toyota has significant factory capacity in the country. By working together, the companies can save resources on research and development and assembly line space.
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Subaru's overseas expansion
The Indiana plant has played a significant role in Subaru's sustainability initiatives. In 2006, it became the first automotive assembly plant to achieve zero-landfill status, reducing waste and improving recycling practices. This commitment to environmental responsibility is a key aspect of Subaru's brand values.
In addition to its presence in the United States, Subaru has also expanded to other countries, although these ventures have been less permanent. In 2009, Subaru entered the South Korean market, but by 2012, they discontinued selling car models due to low sales. In 2019, Subaru opened a production plant in Bangkok, Thailand, in a joint venture with Tan Chong International (TCIL). This plant supplies Subaru vehicles to markets in Asia, including Australia and New Zealand.
Subaru's partnership with Toyota has been a significant aspect of its overseas expansion. Toyota owns a stake in Fuji Heavy Industries (FHI), Subaru's former parent company, and the two companies have collaborated on multiple projects. They have jointly developed vehicles such as the BRZ/86 rear-wheel-drive sports car and the Subaru Solterra/Toyota bZ4X electric SUVs. By leveraging Toyota's US factory capacity, Subaru has been able to produce vehicles like the Toyota Camry in the Indiana plant. This partnership allows Subaru to minimize risks and investments in the potentially risky business of EV manufacturing and sales.
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Toyota and Subaru's electric vehicle collaboration
Subaru and Toyota have a long history of collaboration, with Toyota owning a small stake in Subaru's parent company, Fuji Heavy Industries (now known as the Subaru Corporation). In 2005, Toyota bought 8.7% of Fuji Heavy Industries' stock from GM, increasing its stake to 16.5% in 2008. Since then, the two companies have collaborated on several projects, including the co-development of the Subaru BRZ and Toyota 86 (known as the Scion FR-S in the US market).
In terms of electric vehicle collaboration, Subaru and Toyota have worked together to develop the modular Electric Toyota New Global Architecture (e-TNGA) platform. Subaru-badged models on this platform are called Electric Subaru Global Platform (e-SGP). The two companies have also collaborated on the development of the Subaru Solterra and Toyota bZ4X electric SUVs, with the Solterra being a rebadged version of the bZ4X and one of the SUVs made on the Toyota e-TNGA platform. The Solterra is built in a Toyota factory, while the bZ4X is manufactured at Toyota's Motomachi Plant near Toyota City, Aichi.
Looking to the future, Subaru and Toyota are set to continue their collaboration, with Subaru choosing Toyota to build its next three electric vehicles, to be released by the end of 2026. One of these will be built at Subaru's Yajima plant, and another will be produced at a Toyota factory in the US. The third model remains unknown, with Subaru stating only that it will "have a lineup of battery EVs produced in the United States".
This partnership makes sense for both companies as it allows them to minimise investment in the potentially risky business of EV manufacturing and sales. It also enables them to save resources on research and development, as well as assembly line space, by building two of the same cars (the BRZ and GR86).
Overall, the collaboration between Subaru and Toyota is a significant one, with the potential to shape the electric vehicle market in the coming years.
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Frequently asked questions
Subaru and Toyota are partnering to build three electric crossover SUV models, with one being built at each of their factories. The Subaru-Toyota electric plant is located in Lafayette, Indiana, and the Toyota-built electric SUV will be produced at a Toyota factory in the U.S.
The Lafayette plant is located about two hours north of Tokyo, in the Gunma Prefecture.
The Subaru of Indiana Automotive (SIA) plant in Lafayette will produce the Ascent, Outback, Crosstrek, and Legacy models.
The Subaru-built electric SUV will be called the Solterra.
Yes, Subaru has four plants in Japan, all located in the Gunma Prefecture. Their main plant is the Subaru-chō location, which is a sprawling set of facilities that cover 82 acres.
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