Fuji Heavy places plan to build Subaru vehicles in China on hold

Article by Christian Andrei, on January 21, 2015

Fuji Heavy Industries Ltd. has suspended plans to build vehicles in China. Akira Mabuchi, executive vice president in charge of Fuji Heavy’s China project, remarked that sales in the country wouldn’t be enough to guarantee profits. He said that the carmaker would have to double its sales in China, since profits are split between the company and its probable Chinese partner.

The China government requires carmakers wanting to set up a production base in the country to form joint ventures with local auto groups. Fuji Heavy remains the only Japanese carmaker without government approval to start a joint venture.

Mabuchi, however, said that Fuji Heavy won’t commence local output even if it gains approval of the government. Likewise, auto sales in China dropped from 14 percent in 2013 to 6.9 percent in 2014. For this year, sales growth in the growth is expected to be at its slowest since 1990.

Sales at Subaru in China dropped 2 percent in 2014, but the carmaker expects a 10-percent surge in deliveries this year to 60,000 vehicles. Japanese carmakers like Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. all experienced sales drops in 2013 in China following a territorial row between the country and Japan prompted a consumer boycott.

Yasuyuki Yoshinaga, president of Fuji Heavy, told Bloomberg in an interview in November, that Subaru is increasing its production in the United States. He addedthat while China is still a potential location for a new plant, that won’t happen until current mid-term plan ends in 2020.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries