Subaru to Team with Major Chinese Automaker

Automakers from around the world seem to be eyeing the Chinese market these days, and with good reason. The country's large population spells bigger sales, but for many, entering the market is proving to be a difficult endeavor.

One such case that Walser Subaru can't help but notice is the efforts of Subaru to team with the country's largest automaker, Chery. The two companies have been attempting to join forces for some time in order to jointly develop vehicles for the region, but the Chinese government has imposed some strict rules and limitations on the number of partnerships that businesses can form in the region.

While Subaru doesn't have any active alliances yet in the country just yet, technically, Toyota owns 16 percent of Subaru parent company, Fuji heavy industries. The Oval T currently holds two active partnerships in the country, which is the strict limit that the government imposes. Because of this, the Chinese government rejected Subaru and Chery's request to work jointly back in September, and it seems as though the partnership is losing more steam each day ever since.

As this is really more of a technicality than a direct violation of the country's law, so Chery and Subaru quickly began investigating what could be done to work around this legislation. One way is for Subaru to simply sell Chery its technology. Rather than the two companies jointly developing vehicles to be sold to consumers, Subaru would sell Chery its platforms, which would then be rebranded and sold accordingly. This appears to be the plan too, as reports are now claiming that Subaru may be on board with the idea.

What does this mean for the Subaru models that we know and love in the U.S.? For now, not a thing. But in the future, the increased revenue that Subaru gains from selling its technology to Chery will likely lead to more innovations in best-selling models like the Subaru Legacy and Subaru Outback. For how, you can take them for a test drive in their current form at 600 W 121st St in Burnsville, MN 55337 by contacting us today.

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