Currently reading: Subaru profits crash 27%
Earthquake, sales slump, currency fluctuations and Chinese joint venture problems balmed
Autocar
News
1 min read
1 November 2011

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.

Advertisement
Advertisement

Find an Autocar car review

Driven this week

  • Mini JCW GP 2020 UK first drive review - hero front
    6 July 2020
    First Drive
    The fastest production Mini yet has 302bhp, a 0-62mph time of just 5.2sec and...
  • Ford Kuga 2020 road test review - hero front
    3 July 2020
    Car review
    SUV practicality, Focus underpinnings, plug-in hybrid tech: is this another...
  • Alpina B3 2020 first drive review - hero front
    3 July 2020
    First Drive
    Bavaria's alternative M3 gets an added injection of performance and...

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Mini JCW GP 2020 UK first drive review - hero front
    6 July 2020
    First Drive
    The fastest production Mini yet has 302bhp, a 0-62mph time of just 5.2sec and...
  • Ford Kuga 2020 road test review - hero front
    3 July 2020
    Car review
    SUV practicality, Focus underpinnings, plug-in hybrid tech: is this another...
  • Alpina B3 2020 first drive review - hero front
    3 July 2020
    First Drive
    Bavaria's alternative M3 gets an added injection of performance and...