Indiana is the only U.S. state to have auto assembly plants from Honda, Subaru and Toyota.
Subaru's capacity has grown 55 percent in the past two years to nearly 400,000 vehicles a year — all made with parts from dozens of Indiana suppliers.
A thousand new employees are already at work at Subaru of Indiana Automotive (SIA), gearing up to start making new Outback and Impreza models later this year.
The car-maker has to fix a steering problem in more than 50,000 new Legacies and Outbacks made in Lafayette.
The announcement comes just after the governor’s week-long trade mission to Japan.
Subaru is planning to invest more than $400 million in expanding its Lafayette plant.
Governor Mitch Daniels and Subaru officials made the announcement Wednesday.
Greensburg Honda Plant officials are adjusting production levels in an effort to preserve parts.