Subaru to export passenger cars to China-Nihon Keizai Shimbun

NEW YORK, June 4 Reuters reported that Fuji Heavy Industries Ltd., maker of Subaru brand vehicles, will begin exporting two auto models to China in the coming months, making it the latest Japanese automaker to take advantage of lowered import taxes, a Japanese daily reported.

Fuji Heavy plans to ship and sell several hundred units each of its Forester 2-liter sports utility vehicle model and Impreza 2-liter passenger car model ahead of possible local production in China, the Nihon Keizai Shimbun said in its Wednesday online edition.

A spokesman for Subaru of America declined to comment on the report.

Rivals Toyota Motor Corp and Nissan Motor Co. are also boosting exports to China, the paper said, which helped produce a nearly 25 percent year-on-year surge in Japanese vehicle exports to the country during the January-April period.

Total vehicle exports from Japan to China are expected to exceed 50,000 units this year for the first time in four years, the Nihon Keizai said.

China's deregulation efforts preceding its entry into the World Trade Organization late last year have led global automakers to rush to carve inroads into its growing and potentially enormous auto market.

In addition, Fuji Heavy will likely export its flagship Legacy passenger car to China from next year, the paper said.

The company will also consider cooperating with its largest shareholder, General Motors Corp., in improving its local sales network and launching an auto loan service.

Fuji Heavy has been producing its 660cc Rex mini-cars at a joint venture in China since 1998, selling 1,594 units in 2001, up 8.4 percent on the year, the paper added.