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Fuji(Subaru) : Indiana Will Own Plant And Still Make Isuzu Autos

TOKYO -October 25, 2002; Dow Jones reported that Fuji Heavy Industries Ltd. will make Subaru-Isuzu Automotive Inc., an auto-making joint venture with Isuzu Motors Ltd., a fully-owned unit as of January 1, Fuji Heavy said Friday.

Fuji Heavy will buy the entire 49% stake Isuzu currently holds in the joint venture, based in Indiana.

Fuji Heavy will continue to make Isuzu and Fuji Heavy's "Subaru"-brand vehicles at the Indiana plant, Fuji Heavy said.

The company also said Isuzu will shoulder any loss resulting from the cancelation of the joint operations at Subaru-Isuzu.

Fuji Heavy and Isuzu will negotiate the details of the joint venture cancellation, aiming to reach an official agreement by mid-December, Fuji Heavy said.