BAIC and Subaru reach preliminary deal on China JV

By: Louise Liu   2010-07-30

BEIJING - Beijing Automotive Industry (Holding) Corp. (BAIC), Power Diversity Automobile Trade Group Co., Ltd. and Fuji Heavy Industries reached a preliminary agreement to form a 25:25:50 joint venture that would churn out Subaru cars in China, a source familiar with the negotiations told Economic Observer in late July.

The plant, to be located in Beijing, is scheduled to produce 50,000 SUVs at the early stages and then introduce Subaru sedans. Its supplier base will be in Tangshan, Hebei Province where Power Diversity is headquartered.

BAIC hopes to close the deal by October 1 this year, said the source.