Will Subarus be Produced in China? image

Subaru’s parent company Fuji Heavy Industries has recently declared that the company is having second thoughts about the joint-venture with China and that the company plans to abandon the idea of building cars in this country.

FHI President and COO Yasuyuki Yoshinaga said that this decision was made due to the fact that there weren’t enough preparations made to successfully manufacture Subaru vehicles in China, and so the company is not entirely optimistic about the Chinese auto industry.

At the end of 2011 Subaru and Chinese automaker Chery had plans on forming a joint-venture at the beginning of 2012, planning to build a $369 million production plant in Dalian, a city near the border with South Korea. This was to be made on one condition: Subaru cars will be sold with a Chery badge and through a Chery-run dealer network.

Unfortunately, the National Development and Reform Commission denied the FHI’s proposal, due to the government policy, which states that an automobile manufacturer is allowed a maximum of two Chinese joint ventures. Since Toyota, who owns 16.5% share in the company, has already partnerships with both FAW and GAC, and leads FHI to the impossibility of more joint-ventures.

  • Derek

    Fuji Heavy Industries can build their cars in Myanmar for a fraction of the cost badge them as Subaru and export them to China and Asean and the rest of the world.

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