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Why sales of the popular 2016 Subaru Outback are down

The 2016 Outback is so popular, Subaru can’t keep them on their lots. Why are sales going down?


Subaru has a supply problem and they are selling the new 2016 Outback wagon as fast as dealers can get them. Subaru’s U.S. sales are up a healthy 12.5 percent this year through August, but sales of the Outback are down 2.8 percent in August. It’s because Subaru can't make enough of the SUV-alternative Outbacks to meet demand. What is Subaru doing to overcome the supply problem?

Fuji Heavy Industries’ (FHI) plant in Lafayette, Indiana is humming at full capacity and Subaru announced they will pump $140 million in to the facility to expand capacity by 2017. Until then, the Outback which is made at the plant, will be produced as fast as they can be made here in the U.S. where demand is high. August was the 18th consecutive month of more than 10,000 Outbacks sold in the U.S.

Lafayette, Indiana is the only plant outside Japan and it’s running at full speed to keep up. Subaru has been building the Toyota Camry at the plant, but that will end after next year to make way for Subaru to build the Impreza. Along with freeing up a production line, the new expansion will allow Subaru to start producing a new 7-passenger SUV after 2017.

It’s a good problem for Subaru as they are selling more of their all-wheel-drive vehicles than ever. If you want a new 2016 Subaru Outback wagon, you will likely have to put your order in and wait a couple months. Subaru is working on the supply problem, and it will be 2017 before the $140 million Indiana plant expansion allows Subaru to pump out 100,000 more vehicles per year.

Media source: The Motley Fool