Japan earthquake: Chinese production of Subarus to wait image

Chinese production of Subaru vehicles will be put on a hold as the company tries to recover from last week’s devastating earthquake, Subaru’s parent company Fuji Heavy Industries (FHI) announced today.

According to a report on auto.sina.com.cn, FHI will be delaying its so-called ‘new marketing strategy’ originally set to be implemented next week for an undetermined amount of time.
Reports circulating among local Japanese media said that FHI’s primary goal in wake of the earthquake, which caused many automakers to completely halt operation, is to revive production. The earthquake saw FHI closing five factories, with no set time table for their reopening. According to the reports FHI’s plans to begin Chinese Subaru production will also be delayed.
Rumors had been floating around of Subaru’s partnership with Chery Automobiles, with the Chinese manufacturer confirming the news. FHI and Chery were to jointly invest 30 billion yen ($368.9m) to construct a new facility in Dalian, Liaoning.

The new plant would yield production capability of 50,000 vehicles after the first phase of construction was completed and 150,000 vehicles after final construction, allowing China to become second largest foreign producer of Subaru automobiles after the US.

By Carmen Lee From Gasgoo.com