Earlier this year, Subaru was denied approval for a new factory by the Chinese government. The rationale behind the move was that Fuji Heavy, parent company of Subaru, and Toyota, were already too cozy, and that a Subaru factory would give Toyota one too many joint ventures in China. And then the boycott happened.
With sales of Japanese cars falling in China due to a territorial dispute, Subaru is looking like the victim of good fortune; Bloomberg reports that as Japanese auto makers cut forecasts due to the unfavorable climate in China, Subaru remains unaffected, and is looking to ramp up production at home and in the United States.
While a new line at Subaru’s Indiana plant may help push the company’s U.S. sales to as much as 400,000 units annually, analysts say that Subaru will eventually have to make a foray into the Chinese market with its own plant, lest it be hammered by the 25 percent tax placed on imported vehicles.