Subaru Shifts Focus From China image

Due to expanding car production problems in China, Fuji Heavy Industries decided to boost production in at Subaru of Indiana Automotive in Lafayette.

Fuji, which is the parent company of SIA, declared that it has revised its global sales targets to 850,000 vehicles in fiscal year 2016, due to a delay in establishing production in China and a strong yen exchange rate in world markets. The production delay in China translates in a production increase at SIA by 17.6%, to 200,000 units annually by the summer of 2014.

“We will prioritize expanding production in America while we watch the situation in China and consider what to do there when there are some developments,” said Fuji President Yasuyuki Yoshinaga.

Last summer Fuji asked permission from the Chinese government to form a joint venture with a local company to build cars, but no partner has been found. Subaru is quite new to the Chinese market. The misfortune for the company was to come at a time when the country faces a slowdown due to an overall cooling of the Chinese economy. Volkswagen GM and Nissan are already battling it out in China, so chances for a new comer are quite low. Fuji declared that it doesn’t give up on its plans and that it will wait patiently, while continuing to import cars to China.