diff --git a/CHANGELOG.md b/CHANGELOG.md
index b61f12b92..c711b6a73 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,10 @@
   [wade0317](https://github.com/wade0317)
   [#723](https://github.com/CocoaPods/Xcodeproj/pull/723)
 
+* Create separate group for subproject targets  
+  [maniramezan](https://github.com/maniramezan)
+  [#678](https://github.com/CocoaPods/Xcodeproj/issues/678)
+
 ## 1.13.0 (2019-10-16)
 
 ##### Enhancements
diff --git a/lib/xcodeproj/project/object/helpers/file_references_factory.rb b/lib/xcodeproj/project/object/helpers/file_references_factory.rb
index 20c767836..5a25edac6 100644
--- a/lib/xcodeproj/project/object/helpers/file_references_factory.rb
+++ b/lib/xcodeproj/project/object/helpers/file_references_factory.rb
@@ -178,7 +178,8 @@ def new_subproject(group, path, source_tree)
             ref = new_file_reference(group, path, source_tree)
             ref.include_in_index = nil
 
-            product_group_ref = find_products_group_ref(group, true)
+            product_group_ref = group.project.new(Xcodeproj::Project::PBXGroup)
+            product_group_ref.name = 'Products'
 
             subproj = Project.open(path)
             subproj.products_group.files.each do |product_reference|
diff --git a/spec/project/object/helpers/file_references_factory_spec.rb b/spec/project/object/helpers/file_references_factory_spec.rb
index 9972c8e6c..91b502d38 100644
--- a/spec/project/object/helpers/file_references_factory_spec.rb
+++ b/spec/project/object/helpers/file_references_factory_spec.rb
@@ -246,11 +246,11 @@ module ProjectSpecs
         container_proxy.remote_global_id_string.should == 'E5FBB2E51635ED34009E96B0'
       end
 
-      it "doesn't create duplicate 'Products' groups" do
+      it "create duplicate 'Products' groups" do
         subproject_path = fixture_path('Sample Project/ReferencedProject/ReferencedProject.xcodeproj')
         @subproject = Xcodeproj::Project.open(subproject_path)
         @project.main_group.new_reference(@subproject.path)
-        @project.objects.select { |o| o.display_name == 'Products' }.count.should == 1
+        @project.objects.select { |o| o.display_name == 'Products' }.count.should == 3
         @subproject.objects.select { |o| o.display_name == 'Products' }.count.should == 1
       end
     end