Automotive News reports Subaru no longer plans to manufacture vehicles in China in the near future. The company had originally planned to begin building cars in the country by 2016, but has re-shifted its focus back toward North America. Subaru will now increase production at its Indiana facility while also investigating other ways to up capacity in NA. That could mean adding a new line in Indiana or building an entirely new facility.

It's only been 10 months since Subaru announced it planned to build a manufacturing plant in China in just five years. Last year, the company said it planned to build 150,000 units per year in the People's Republic and import an additional 30,000 vehicles. Those numbers have been slimmed to a more modest 100,000 units, all of which will be imports. While Yasuyuki Yoshinaga, the president of Fuji Heavy Industries, says he would still like to see Subaru have a factory in China, he doesn't expect it to happen by 2016.

In the meantime, Subaru has also increased its North American sales targets from 380,000 units to 410,000.


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  • 17 Comments
      Chris Bangle
      • 2 Years Ago
      Why on earth would you not mention the reason why Subaru isn't building a plant in China? This article makes it seem like Subaru is having problems selling cars in China. The reason Subaru is cutting Chinese expectations is that China limits a foreign automotive company to two Chinese partnerships. China says that Toyota's 16.7% stake in Fuji Heavy Industries (Subaru's parent company) makes Subaru a part of Toyota and Toyota already has 2 partners. They won't allow a 3rd partner. With upwards of 25% tariffs on foreign built autos, it puts Subaru at a significant pricing disadvantage versus locally built vehicles. That is the reason Subaru is having to refocus out of China. 5 years ago, this more than likely wouldn't have been an issue, but China is looking to curb automotive production.
      lpattis
      • 2 Years Ago
      Bring back the Legacy wagon and I'll consider being a Subaru owner again...
        Hibryd
        • 2 Years Ago
        @lpattis
        Amen to that. I'd love to have a Subaru wagon option, now that the Outback is an SUV.
      Paulo Mabira
      • 2 Years Ago
      this car...Dodge Caliber 2.0
      1454
      • 2 Years Ago
      Well, killing off the LGT isn't a good start, IMVHO. As someone who currently owns two Subarus, a FXT and a LGT, I don't plan on my next purchase being a subaru because the company is shifting too much in the toyota direction. Bring the Tech you have overseas, like the diesels in the EU, and the smartkey tech, etc like in the JDM, and put them into the american cars. And for gosh sakes, redesign that hideous Legacy to something I would want to buy again.
      bluemoonric
      • 2 Years Ago
      I was ready to purchase an Outback until I read about the steering vibration problems. Are the head gaskets still a problem?
        Al Terego
        • 2 Years Ago
        @bluemoonric
        Head gasket problems are a thing of the past which is say they occurred on past-generation engine types. Steering vibration(which affected 2010-2011 models) has been cleared up and deemed fixable with the TSB's mentioned above and on the MY 2012+ Legacy's and Outbacks, a newer, non-vibrating steering column has been incorporated and shouldn't cause any problems at all. All in all, the steering vibration problem was estimated by independent sources to affect less than 2% of 4th generation Outbacks and Legacy's.
        lpattis
        • 2 Years Ago
        @bluemoonric
        I hadn't heard about a head-gasket problem on the current generation OB...but I had a '10 3.6R Limited with the steering-vibration, and while Subaru issued a series of TSBs, for some the problem remains. I dumped mine in the midst of the TSBs, as I could see the handwriting on the wall.
      Soyntgo4it
      • 2 Years Ago
      This will be a great addition to Subaru I can't wait to test drive it myself. Since now that I'm considering buying a Subaru for the first time ever. If I don't end up buying this I will get the Impreza/WRX for sure.
        Gorgenapper
        • 2 Years Ago
        @Soyntgo4it
        Wait for the next gen WRX/STI. The EJ257 is supposedly going away, and with it hopefully the ringland problems plaguing the current STI
      Hazdaz
      • 2 Years Ago
      Its great to see a company reversing course and actually decide that NA is a better place to manufacture than China. It would be even nicer if it was our own homegrown companies, but the fact that this Japanese company sees better prospects in building here speaks volumes for how over-hyped China's manufacturing savings are. And to be clear, I am not picking on the Detroit carmakers, but rather in other industries where US companies love to play up their "American-ness" but are so very quick to ship jobs overseas all in the name of unfettered capitalism and greed.
        1454
        • 2 Years Ago
        @Hazdaz
        Shut up. This article has nothing to do with what you posted. Read chris's response below.
        Randy
        • 2 Years Ago
        @Hazdaz
        @Hazdaz And it's nice for companies like Subaru to not have Legacy costs! Ziiiiiing I don't have time to explain things but you should understand things like UAW's influence and cause of Legacy costs with retirement and health care How that made it possible for import car makers to build cheaper cars (no legacy cost) Gave them an edge which they used to improve their cars in a time where us companies couldn't move fast enough because of shrinking market, lower profits and so on. You really need a more macro look at it. Did you know Ford was going to move most of its US production out of the country because the UAW was costing them so much money? They came to terms luckily! Bottom line is if you want to point fingers in a round a bout way, point them at the OLD UAW because that is THE reason why US companies gave up market share and started to slowly go out of business for the last 30 years! Thank God everyone woke up!
          Hazdaz
          • 2 Years Ago
          @Randy
          Another typical clueless post misplacing blame onto the victims of Detroit's stupidity instead on the real cause. The decline of Detroit lies squarely on the shoulders of an insular and over paid management that didn't have a clue how to compete. They were in commanding control of the auto industry for so long that didn't have any idea that they just might fail but since so many executives their their own entrenched fiefdoms they didn't care as long as their own part of the company survived. Just to show you how wrong you are, why don't you look at other, non-union controlled manufacturing industries in the US. The car industry is one of the last remaining areas of large-scale manufacturing left in the US and that is DESPITE all the sky-is-falling talk from nay-sayers, yet other areas have been out-sourced en masse even without the supposed crippling costs of unionization. conversely, in countries like Germany, unions play an even larger role in manufacturing (of all types) and their economy has boomed over the years and has helped maintain an incredibly high standard of living. I suggest you run along and go throw blame elsewhere because not only are you barking up the wrong tree, but I was my post NOT about Detroit and instead was talking about other US based companies. I even added a sentence in there to explain that but apparently reading comprehension escapes some.
      JF
      • 2 Years Ago
      Speaking (kinda) of the Crosstrek XV, here's a neat video of it vs. a LR Defender. A pointless comparison considering the target demos but still cool.
        JF
        • 2 Years Ago
        @JF
        ...and the link: http://www.youtube.com/watch?v=7NPq4kv9k7E
      CarCrazy24
      • 2 Years Ago
      Glad to see they're doing well here, we love our Subaru Impreza. Wish they'd sell us the diesel though
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