Report: Subaru to open its first plant in China
By Andrew C., 30 Aug, 2010. 0 Comments
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For those who don´t know, the only Japanese brand not manufacturing in China is Subaru, but it appears that things are about to change as the firm is in talks with several partners in that country about a possible joint venture. According to Ikuo Mori, president of the Subaru brand's parent company, Fuji Heavy Industries Ltd.,locally produced cars have slimmer profit margins than those which are imported from Japan. The solution would be setting up a local production in China, an essential move for Subaru as the firm wants to grow in the world's biggest auto market. We are now in talks with several local makers as possible candidates for a joint venture partner, Mori said. We are going to decide how to advance there by the end of the year. Anyway, it appears that Subaru expects to be profitable on China after the first two years. Subaru sold 35,000 vehicles in China last year and is targeting 50,000 this year, but if expects over 100,000 units annually if it will find a Chinese partner.
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