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LOCKED OUT: Fuji Heavy Gives Up on China Subaru Production

Tuesday, May 8th, 2012

The Wall Street Journal reports this morning that Japan's Fuji Heavy has been frustrated in its attempts to form a joint venture in China to build Subaru brand vehicles. 

Ten, even five years ago, Fuji Heavy would have been welcomed to China, but changing strategies for the nation's auto industry now emphasize growth from within and consolidation of Chinese auto manufacturers.

According to the Journal, the Japanese automaker's five-year business plan, announced less than one year ago, focused on growth in China, but the company has been thwarted in finding a suitable partner and will now shift its focus to growth in North America. 

Subaru is said to have limited production capacity in China, but planned to triple that capacity to 180,000 units over the next five years.  That goal has now been trimmed to 100,000 units by year 2016. 

 


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