Chery Automobiles is to invest 3.66 billion yen ($365.7m) with Subaru to jointly construct a new factory in Dalian, Liaoning, the Beijing Daily reported today.
The news, which has been circulating through several Japanese papers, caused stock prices for Subaru’s parent company Fuji Heavy Industries to hit 658 yen ($8.037), a new record for the company.
According to information from Nihon Keizai Shimbun, the Dalian site is expected to produce 50,000 vehicles by the end of primary construction, with final construction increasing that amount to 150,000. The factory will market the second overseas construction site for Subaru, after the United States.
Subaru’s recent performance in the Chinese market has been exemplary, with total 2010 sales reaching 57,000 vehicles, an increase of 62.9%. The Japanese automaker plans to sell 600,000 this year. Subaru has been previously linked with other Chinese companies including BAIC, SAIC and Lifan.
By Carmen Lee From Gasgoo.com