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
-
Choosing the Right Fasteners for Automotive
PennEngineering makes hundreds of different fasteners for the automotive industry with standard and custom products as well as automated assembly solutions. Discover how they’re used and how to select the right one. (Sponsored Content)
-
Cobots: 14 Things You Need to Know
What jobs do cobots do well? How is a cobot programmed? What’s the ROI? We asked these questions and more to four of the leading suppliers of cobots.
-
When Automated Production Turning is the Low-Cost Option
For the right parts, or families of parts, an automated CNC turning cell is simply the least expensive way to produce high-quality parts. Here’s why.
