China Car Forums banner
1 - 4 of 4 Posts

·
Administrator
Joined
·
17,135 Posts
Discussion Starter · #1 ·
Subaru and Chery to jointly construct new factory in Dalian.


March 03, 2011
Chery Automobiles is to invest 3.66 billion yen ($365.7m) with Subaru to jointly construct a new factory in Dalian, Liaoning, the Beijing Daily reported today. The news, which has been circulating through several Japanese papers, caused stock prices for Subaru's parent company Fuji Heavy Industries to hit 658 yen ($8.037), a new record for the company.

According to information from Nihon Keizai Shimbun, the Dalian site is expected to produce 50,000 vehicles by the end of primary construction, with final construction increasing that amount to 150,000. The factory will market the second overseas construction site for Subaru, after the United States.

Subaru's recent performance in the Chinese market has been exemplary, with total 2010 sales reaching 57,000 vehicles, an increase of 62.9%. The Japanese automaker plans to sell 600,000 this year. Subaru has been previously linked with other Chinese companies including BAIC, SAIC and Lifan.

http://autonews.gasgoo.com/china-news/subaru-and-chery-to-jointly-construct-new-factory-110303.shtml
 

·
Registered
Joined
·
1,268 Posts
Seems like we're not yet being given the whole story here by Gasgoo.
Is this, or is this not, a joint venture, is the question folks are wondering about. Legally Subaru cannot produce cars at this factory as a wholly owned enterprise. It must partner with Chery as a minority stakeholder (no more than 50%) in a JV. Since this involves production of Subaru models, this is a different relationship from the failed Chrysler-Chery tie-up. I don't think that Chery would be satisfied to just share a production plant. It is seeking technology and Subaru is seeking a viable partner in China, something it didn't have previously.
 

·
Administrator
Joined
·
17,135 Posts
Discussion Starter · #3 ·
Chery-Subaru joint venture looks unlikely

Subaru's hopes to open a joint venture with a Chinese manufacturer have reached another hurdle. According to Shanghai Securities News quoting inside sources, the agreement between Subaru's parent company Fuji Heavy Industries and Chery failed to meet national standards and was rejected.

Reportedly the joint venture proposal did not comply with the country's Policy on Development of Automotive Industry, due to Japanese manufacturer Toyota's 16.5% share in Fuji Heavy Industries. The rejection puts a damper on the potential JV, which would have its first production site located in Dalian. The 30 billion yen ($390.5m) site would have an early-production target of 50,000 vehicles, expanding to 150,000 vehicles after full completion.

Without the cost benefits achieved of manufacturing vehicles in the country, it will be hard for Subaru to compete for the Chinese market with other companies. The manufacturer has been forced to leave the country before in 2002, after a failed venture with Guizhou Aviation Industry Group. According to some analysts, Subaru's best bet is to manufacture vehicles via a Toyota-affiliated JV.

http://autonews.gasgoo.com/china-news/chery-subaru-joint-venture-looks-unlikely-110915.shtml
 

·
Registered
Joined
·
41 Posts
Chery-Subaru joint venture gains lifeline
By Carmen Lee From Gasgoo.com
November 25, 2011

Gasgoo.com (Shanghai November 24) - A major breakthrough has occurred in the proposed joint venture between Subaru and Chery. Sources familiar with both parties said that the joint venture is, in essence, ready to be approved. According to a report on the Beijing Times today, if Subaru parent Fuji Heavy Industries is willing to allow its vehicles to be branded with the Chery logo and allow Chery to head the sales network in China, there should be no problem with the JV proposal going through.

FHI signed an agreement to establish a joint venture with Chery in the beginning of the year. Both parties agreed to open a production site in Dalian, Liaoning. Subaru's partner in China, Pangda Group, also favors the new joint venture.

However, the JV proposal failed to gain the National Development and Reform Commission's approval, due to FHI 16.5 percent shareholder Toyota already having separate joint ventures in China. The NDRC rejected the proposal in September, causing many to believe that plans for the JV were dead in the water.

According to the Beijing News report, FHI only has to agree to its vehicles carrying the Chery badge and Chery leading the JV's sales network. No other changes to the proposal need to be made for official approval.
 
1 - 4 of 4 Posts
Top