Mexican Media Brands
Subaru Delays Plan for Factory in China
Fuji Heavy Industries Ltd. is temporarily halting plans to open its first Subaru assembly plant in China, even if the government approves its request to launch the venture with Chery Automobile Co.
Share
Fuji Heavy Industries Ltd. is temporarily halting plans to open its first Subaru assembly plant in China, even if the government approves its request to launch the venture with Chery Automobile Co.
Bloomberg News notes that Chinese regulators have balked at the Chery alliance because FHI's biggest shareholder is Toyota Motor Co., which already operates two joint ventures in China.
Akira Mabuchi, the FHI executive vice president who heads the Subaru project, tells reporters that slower growth in China's auto market makes the venture less financially appealing. Because profits would be shared with Chery, Subaru would need to sell twice as many locally made cars to equal the profit from simply exporting them from Japan, he explains.
Last year Subaru sold 55,000 vehicles in China, down 2%. Bloomberg News says the company hopes to reach 60,000 deliveries this year.
RELATED CONTENT
-
On Automotive: An All Electric Edition
A look at electric vehicle-related developments, from new products to recycling old batteries.
-
Multiple Choices for Light, High-Performance Chassis
How carbon fiber is utilized is as different as the vehicles on which it is used. From full carbon tubs to partial panels to welded steel tube sandwich structures, the only limitation is imagination.
-
GM Seeks to Avert U.S. Plant Shutdowns Linked to Supplier Bankruptcy
General Motors Co. says it hopes to claim equipment and inventory from a bankrupt interior trim supplier to avoid being forced to idle all 19 of its U.S. assembly plants.
