Subaru Puts China Production Effort on Hold as Car Demand Wanes

Fuji Heavy Industries Ltd., the only Japanese automaker without Chinese government approval to start a joint venture, put efforts to build cars on hold in the country, where demand growth is slowing.

Sales in China would not be enough to guarantee profitability, Akira Mabuchi, executive vice president in charge of the company’s China project, said last week. The maker of Subaru cars won’t start local production “even if Chinese government approves” its planned carmaking venture with Chery Automobile Co., he said.