Has Fuji Heavy Scrapped Factory Plans in China?

Fuji Heavy Industries Ltd. has canceled its plans for a car joint venture in China with Chery Automobile Co. because it has been unable to obtain government permission, The Nikkei reports, citing unidentified company sources.

The Subaru maker denied a similar report by Kyodo News earlier this month.

FHI hoped to start producing cars next year at a new plant in Dalian with capacity of 50,000 units. The Nikkei says the company will boost output in Japan and the U.S. by a combined 50,000 units to compensate.