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Fuji Heavy to Boost Output Capacity 4 Percent at Gunma Plant

Fuji Heavy Industries Ltd. (7270), the Japanese maker of Subaru brand vehicles, will boost output capacity at its plant in Gunma prefecture by about 4 percent, said Fusao Watanabe, a company spokesman.

Fuji Heavy plans to spend more than 1 billion yen ($13 million) to upgrade the facility and increase capacity to 420,000 vehicles per year by the end of March, Watanabe said in a phone interview today. The Tokyo-based maker of trucks and cars is also strengthening production capacity for small cars at a different plant in the same city at a cost of 10 billion yen, he said.

The Nikkei newspaper reported the expansion plans earlier today without saying where it obtained the information. Fuji Heavy makes Subaru models such as the Legacy and Impreza at the plant, according to the report.

To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net

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