Earthquake, sales slump, currency fluctuations and Chinese joint venture problems balmed

Subaru owner Fuji Heavy Industries has announced a slump in year-on-year profits of 27%.

It has blamed production disruption in the wake of the earthquake in Japan earlier this year, the weakness of the yen and a fall in sales on the drop, as well as its failure to get approval for a joint venture project in China.

In total, sales fell 19%, with currency fluctuations accounting for the rest of the fall in profits to around £26 million.

The Chinese government has so far refused Subaru's requests to form a joint venture with state-owned car maker Chery Automobile, on account of it being part owned by Toyota.

Toyota already has joint ventures with two Chinese car makers, and the government is eager to restrict the number of JV deals non-local manufacturers can sign.

Fuji Heavy President Yasuyuki Yoshinaga cited the Chinese problems as key to Subaru's future. "If we don't gain approval before next year it will be difficult to pursue the five-year business plan," he said.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • 2016 Audi A3 Sportback e-tron UK review
    First Drive
    29 September 2016
    First UK drive finds the facelifted A3 Sportback e-tron remains a first-rate plug-in hybrid that is packed with tech if a little short on driver appeal
  • Citroen C11.2 Puretech 82 Furio
    First Drive
    29 September 2016
    Citroën's city car gets a new sporty-looking trim level, adding visual adornments, but no premium for the 1.2-litre Puretech triple we're driving
  • Mercedes C350e Sport
    First Drive
    28 September 2016
    Petrol-electric C-Class is a surprisingly well-priced alternative to a diesel but not the greatest example of the new ‘PHEV’ breed
  • Car review
    23 September 2016
    Aston kicks off its ‘second century plan’ with an all-new turbo V12 grand tourer
  • Ford Ka+ 1.2 Ti-VCT 85
    First Drive
    22 September 2016
    A rounded, refined and well-sorted bargain supermini – once you’re used to the confusing role redefinition imposed on the once-cheeky Ka