Fuji Heavy Industries is talking with Chery Automobile about a joint venture factory in Dalian as part of the Subaru maker’s efforts to benefit from the rapidly expanding Chinese market.
‘Sources close to the matter’ told Kyodo News Fuji Heavy hopes to agree a deal with Chery by March to begin production of medium sized four wheel drive vehicles in 2013.
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Of Japan’s eight major automakers, only Fuji and Daihatsu have yet to begin production in China.
The plant, to be owned 50-50 by Fuji Heavy and the Chinese company would be only the Japanese firm’s second overseas operation after the long-established plant in Indiana, in the US, originally a venture with Isuzu but now helping stakeholder Toyota with Camry production alongside Subaru 4WD models especially popular in snow belt states.
The Chinese factory is expected to produce 50,000 units a year initially and eventually boost capacity to around 150,000.
Fuji Heavy and Chery, based in Anhui Province, are also expected to cooperate on sales. Separate auto manufacturing and distribution JVs are not uncommon in China.
