Shut Out Of China, Subaru Gets The Last Laugh

Derek Kreindler
by Derek Kreindler

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.

Derek Kreindler
Derek Kreindler

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  • Icemilkcoffee Icemilkcoffee on Nov 20, 2012

    Hey- how come we don't get this handsome Impreza sedan?

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    • Tosh Tosh on Nov 21, 2012

      @SuperACG I want a wagon with a manual, but I refuse to consider any car with the double penalties of AWD: weight and complexity. So until the Subaru marketing wizards figure this out, a Subaru will not make it onto my short list.

  • Phxmotor Phxmotor on Aug 01, 2013

    Subaru is not on your "short list" because of weight and complexity?... you must be kidding! After owning Jeeps and other 4wd's and AWD's of various makes, I have found that the Subaru design is the best and most basic and best simple design for AWD. Ive had 9 Subarus, The AWD never fails! I live in serious (600 inches and more per season)snow country (Northern California) and the AWD is a tool, not a triviality. I've had more reliability with my Subaru's than with my makes me laugh when the auto writers try to claim that Subaru's are not serious off road machines. Yes they are... anyway, if you want to cross them off your list go ahead. But the reason you cite is simply not a valid reason.