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

Article by Christian A., 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

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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