Subaru Seeks Joint Venture with Chinese Automaker
Published Wednesday, 21 December, 2011 by Blog Admin. Categories: News.
The large consumer base in China makes it an interesting market for major auto makers, and many are finding a way to take a larger piece of the automotive pie there. Of course, there are Chinese automakers, though they don't hold the universal market share the way American, Japanese and European automakers do. But, for brands like Subaru, it's becoming apparent that partnering with well-established Chinese companies could make for some interesting developments.
One such Chinese company, Chery, which markets the Chery QQ, has shown some interest in forming a partnership with Subaru. However, certain laws prohibit automakers from endeavoring on more than two joint deals within the country. As Subaru's parent company, Fuji Heavy Industries, is partly owned by another major Japanese automaker, it gets a bit complicated. It's worth noting, however, that Toyota, while they only claim 16 percent of Fuji Heavy Industries, does, in fact already have two active partnerships in China.
Both Subaru and Chery continue to work towards a partnership, despite opposition from the Chinese government. How are they working around it? Well, if Subaru agrees, Chery will take the proverbial reins in China, selling Subaru models with Chery badges through authorized Chery dealers. And, according to a recent report in the Beijing Times, it seems that this agreement is the exact thing that will do the trick, and the partnership is moving forward.
What does this mean for the Subaru models that are sold here in the U.S.? Not much, for now. But if this joint venture leads to increased revenue for Subaru, we could see more advanced technology in future iterations of the Subaru Legacy and the Subaru Outback.
Although, both models currently boast some pretty impressive features, so it's hard to imagine how Subaru could make them even better. Guess we'll have to wait and see! In the meantime, stop into Schaller Subaru, we're located at 34 Frontage Rd Berlin, CT 06037, and we invite you to take any of the new Subaru models in our inventory for a spin. Questions? Contact us via our website anytime.
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