Just-Auto issued a breathless press release with the hot news that the nasty Chinese government has said no to a joint venture between Japan’s Subaru and China’s Chery. If this sounds like deja vu to you, then you are an ace analyst. Send your CV to just-auto.
The story is ancient news. Last October, Fuji Heavy was told its application was denied because Subaru “is an affiliate of Toyota Motor Corp.” Toyota already has two joint ventures in China, and a company can’t have more. The argument sounded a bit belabored. However, two months later, the Chinese government issued an edict that discouraged new joint ventures between Chinese and foreign carmakers in a market that battles with overcapacity: “Sorry, we are closed!”
Just-auto fell victim to a press release by Subaru, which announced slight adjustments to Fuji Heavy’s “Motion-V” 5 year business plan. One of the changes is a belated realization that “it seems difficult to establish local production in China.” Therefore, “FHI will make a shift from local production scheme to car export scheme.” Except that there never was a local production scheme. Subaru will continue importing cars to China. Good luck with that.