Fuji Heavy Says No Decision Made on China After Kyodo Report
Fuji Heavy Industries Ltd. (7270), the maker of Subaru cars, said the company hasn’t made a decision on its China production plans after Kyodo News reported the automaker may shelve a proposal to build a plant in the country.
“Nothing has been decided,” said Kenta Matsumoto, a spokesman at Tokyo-based Fuji Heavy. The company is still in discussions on the matter, he said.
Fuji Heavy may cut its target to sell 180,000 vehicles in China by March 2016 and instead focus on increasing sales in the U.S., Kyodo reported today, citing unidentified company officials. It’s too early for Fuji Heavy to discuss any revisions to its midterm targets, Matsumoto said.
The carmaker, 16 percent owned by Toyota Motor Corp. (7203), has failed to receive government approval to make vehicles with China’s Chery Automobile Co. (CACTZ) in the country since they submitted an application last year. The government isn’t approving Fuji Heavy’s proposal because it considers the company to be part of Toyota, which already has the maximum of two Chinese partners, three people familiar with the matter said last year.
To contact the editor responsible for this story: Young-Sam Cho at firstname.lastname@example.org