Subaru Resumes Production of Full-Sized Models

Subaru says it will start making full-sized cars tomorrow, for the first time since last month's Japan earthquake shut down production. The company cautions that the initial factory output will be about half the normal rate, owing to parts shortage and power outages.

The announcement is good news for Subaru dealers, as the company's Forester SUV and Impreza sedan are among the best-selling Japanese imports in the U.S.

Subaru's plant in Lafayette, Ind., where the Legacy is assembled, will be running at half production on certain days because of parts shortages.

The earthquake interrupted a hot sales year for Subaru. On March 1, the company reported record-breaking sales for February, up nearly 20% from the previous years. February records were set by the Forester, Impreza, Legacy and Outback, and the company said Impreza WRX volume more than doubled compared to the previous year.

Subaru is owned by Fuji Heavy Industries of Tokyo, which has contributed $500,000 in cash and $500,000 worth of equipment to help with earthquake relief efforts. Fuji employees contributed another $100,000. In the U.S., Subaru of America is providing matching funds for dealer contributions to the American Red Cross and double matching for employee contributions.

Nissan, Mazda, Suzuki and Mitsubishi have all managed to bring some production back online. Toyota and Honda are still mostly idled.