Toyota to request tax abatement in Laf.

LAFAYETTE, Ind. (WLFI) - $42 million dollars worth of equipment could soon be installed at Subaru of Indiana (SIA) in Lafayette if a tax abatement is granted.

Toyota Motor Manufacturing Northern Kentucky, the Toyota affiliate that oversees the operations at SIA, is going to request the tax abatements.

SIA Executive Vice President Tom Easterday said the new equipment will be for the next generation Toyota Camry, the 2012 model, which is set to begin production at SIA in 2011.

SIA would keep the same number of employees. He said new jobs could be created if the new Camry model is popular with consumers.

SIA is currently producing about 90,000 Camrys per year.

"Everything about the new Camry is confidential at this point. I really can't comment on the styling or any of the other changes for the next generation Camry. Right now what we're looking at is just getting ready for that production to start," said Easterday.

Easterday said if the abatement is granted, equipment installation will begin during SIA's summer shutdown in July. Engineers would use weekends and holiday shutdowns as other times to install equipment as well.

"We'll start the equipment installation basically in the second half of this year. Then we'll be leading up to the actual start of production about a year from now," said Easterday.

Easterday adds the new equipment would make SIA more competitive in the marketplace.

"It's not avoiding taxation. We're already the highest taxpayer in Tippecanoe County. What it is, it's a phase-in. We need the abatement to basically level the playing field with our competitors," said Easterday.

Those competitors, the Camry plant in Georgetown, Kentucky, doesn't pay property taxes and Japan also has a different taxation system.

The abatement will be on the agenda for Thursday's Redevelopment Commission meeting. If it's approved by that commission, the Lafayette City Council would have final approval.