President Subaru: Settled for recovery after the earthquake and started production in China before 2016

According to the Automotive News website, Subaru CEO Yasuyuki Yoshinaga said in an interview in early October that the company is currently working on recovering from the earthquake, continuing its Motion-V five-year development plan, and preparing to start production in China by 2016.

Despite the fact that the factory is still partially shut down and there is a shortage of spare parts, Subaru’s global sales in September still rose by 1% year-on-year. Ji Yongtai believes that the Motion-V five-year plan announced in July has a certain role in promoting recovery after the earthquake.

According to the plan, Fuji Heavy Industries will increase its annual sales of Subaru models to 900,000 units in FY2016 (April 2016-March 2017), which is more than 40% of the 2010 fiscal year. The sales target for each region is: 380,000 vehicles in North America, including 350,000 in the United States; 180,000 in the Chinese market; 160,000 in Japan; 60,000 in Europe; 50,000 in Australia; and 70,000 in other regions. In addition, Fuji Heavy Industries plans to introduce four fuel-efficient models, including the variant of the Impreza Subaru XV, the rear-wheel-drive sports car BRZ jointly developed with Toyota, the refurbished design forester and the Subaru's first hybrid.

At the end of last month, the news indicated that the cooperation application between Subaru and China's Chery Automobile had been rejected by the National Development and Reform Commission of China. However, Ji Yongtai's interview in October reiterated China's domestic production plan. It pointed out that currently, Subaru's overseas production capacity is all concentrated in the United States, with an annual output of approximately 160,000 vehicles. In the future, it plans to open up Chinese factories with an annual production capacity of 150,000 vehicles. Subaru's overseas production capacity will reach after the US production capacity is increased to 170,000 units. 320,000 vehicles/year.

Ji Yongtai also revealed that Subaru's normal inventory is 50 days, the current level of inventory is less than, is expected to return to normal next March.