Chinese media has reported that Chery Automobile plans to build Subaru vehicles under a manufacturing agreement with Fuji Heavy Industries.
Subaru decided to contract its vehicle production to Chery after the Chinese government rejected its bid to form a manufacturing joint venture.
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A foreign automaker is not allowed to establish more than two passenger vehicle partnerships and Fuji Heavy is part-owned by Toyota which already has two partnerships in China.
Subaru currently exports finished vehicles to China.
Chery-Subaru JV proposal could face government hurdle
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