May. 23, 2012 (China Knowledge) - Fuji Heavy Industries Ltd, the manufacturer of Subaru-brand cars, has abandoned plans to build facilities in China
for the manufacturing of Subaru models, as the Chinese government did not approve the plans.
According to the plans, Fuji Heavy would team up with leading Chinese private automaker Chery Automobile Co Ltd for Subaru production in the country, but the Chinese regulators favor ventures that will make technologically advanced vehicles, such as hybrids and electric vehicles.
Last July, Fuji Heavy made a five-year plan until March 2016 to boost global sales to 900,000 units, but the company has lowered the target. Sales target in China
has also been cut from 180,000 units to 100,000 units.
A Chinese tariff of 25% on imported cars makes Fuji Heavy difficult to sell in large volumes, said analysts.
Yasuyuki Yoshinaga, president of CEO of Subaru, said we have not given up on local production in China
, adding that the company will continue waiting for any opportunity.