Companies

Fuji Heavy hasn't decided on China venture

(Agencies)
Updated: 2010-07-23 15:03

Fuji Heavy Industries Ltd said it hasn't decided on whether to form a production venture in China following a Chinese media report that the Japanese maker of Subaru-brand cars had begun talks on such a proposal.

"We are exploring various possibilities in China, including whether or not to enter the market,"spokesman Kenta Matsumoto said by phone from Tokyo. He declined to confirm or deny a report by China's Economic Observer newspaper that the company is in talks with Beijing Automotive Industry Holding Co and Power Diversity Automobile Trade Co about forming a production venture.

President Ikuo Mori said in December he aims to find a partner to produce cars in China within a year as the company's sales increase in the world's biggest auto market.

Fuji Heavy is also talking to two other Chinese automakers about forming a venture, according to the report, which didn't name the companies.

Beijing Auto also has partnerships with Hyundai Motor Co and Daimler AG in China. Power Diversity, an auto dealer, sells vehicles including Audi, Mercedes-Benz and Subaru models.

Fuji Heavy shares gained 4.9 percent, the biggest gain in seven weeks, to 476 yen as of 1:14 pm in Tokyo.