SIA plans $37M of improvements

LAFAYETTE, Ind. (WLFI) - Subaru of Indiana Automotive (SIA) plans to make $37 million worth of improvements to its Lafayette plant.

November sales of the Subaru Outback are up 142% from last year.

The improvements, consisting of new robotics equipment in three parts of the plant, will for now simply retain existing jobs.

Tom Easterday, SIA spokesperson and senior vice-president, said the plant will increase line production speed and hopefully hire more workers when the economy starts to recover.

The Lafayette Redevelopment Commission is recommending the city council approve a 10 year tax abatement for SIA.

"By doing that I think they are not only keeping us competitive and keeping similar manufacturers competitive, but also recognizing that it can improve employment in the future," said Easterday.

Easterday said the equipment will be added in the paint shop, body assembly area, and the trim and final assembly area.

"About every 5 years a model is changed, particularly for passenger cars. The Camry will be coming up for a major model change. That usually means a change to the exterior as well as some of the component parts and they will be coming up in 2011," said Easterday.

Easterday said $1.95 million is also included in the abatement for structural improvements.

Laura Walls, Greater Lafayette Commerce spokesperson and program manager for economic development, said SIA is one of the best corporate citizens in Lafayette and it's important to support them.

"This is a phasing in of their property taxes," said Wells. "As Tom said, they are the leading tax payer in Tippecanoe county. So they are still going to be the leading tax payer after this abatement is, hopefully, approved by the city council. "