Beijing Auto Talking to Fuji Heavy about Making Subarus in China
By Michelle Krebs July 23, 2010Chinese automaker Beijing Automotive Industry Holding Co. (BAIC) and Power Diversity Automobile Trade Co. reportedly are in talks with Japan's Fuji Heavy Industries, which makes Subaru cars, about setting up a production venture in China.
BAIC and Power Diversity would each own 25-percent stakes in the venture; Fuji would own 50 percent, reported China's Economic Observer newspaper. The partner would produce 50,000 vehicles a year. Its first model would be a Subaru SUV, with sedans to follow, the paper said.
None of the companies involved are commenting on the report.
BAIC has been expanding its relationships. It already has partnerships with Korea's Hyundai and Germany's Daimler in China. It was the partner of Jeep, the earliest Western pioneer to make cars in China.
BAIC grabbed headlines last year when it was going to take a minority stake in a deal with buy Swedish automaker Saab. However, the deal fell through. Still, BAIC acquired the intellectual property, technology and tooling to build the older generation Saab 9-3 and Saab 9-5 in China.
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