Subaru has shelved plans to establish a manufacturing presence in China.
Demand for the Japanese company’s vehicles has continued to rise in the world’s largest automotive market, however the growth rate has been halved between 2013 and 2014.
Demand for the Japanese company’s vehicles has continued to rise in the world’s largest automotive market, however the growth rate has been halved between 2013 and 2014.
The automaker is still waiting for the Chinese government to approve a joint-venture proposal. Executives suggest the decision to forgo local manufacturing has been finalized, even if the joint venture moves forward.
“Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan,” said Akira Mabuchi, executive VP of Subaru parent Fuji Heavy Industries, as quoted by Bloomberg.
Recent reports suggest the company has also halted plans to move XV Crosstrek production into the US. The decision is said to have been driven by the weak yen, which encourages Japanese automakers to build vehicles at home.
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