Five players fighting for the Subaru JV

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As previously reported on CCT, Subaru are planning to enter into China as a local producer in a yet as of unnamed local suitor, in previous CCT articles we mentioned JMC, FAW, and BAIC, but it according to today’s media reports more suitors are entering the fray.

Earlier today it emerged that SAIC, the JV partner to GM and also VW, were interested in working with Subaru in China, but an unlikely player in Pang Da Group (a Subaru dealership group) and Chery have entered the fray. In may just be media rumors on Chery’s behalf, as the Chairman previously stated that he is not interested in working with foreign car companies, although the alure of Subaru’s AWD tech might be enough to tempt Chery over to a joint venture partnership.

From what we have learned, SAIC leadership are in a strong position due to their investment in Shanghai Ji’An, one of the three official Subaru sales agents in China, that has strong support from Subaru.

Furthermore, SAIC’s chairman, Mr. Ye Yong Ming has been personally involved with Subaru earlier this month, but it appears that SAIC are pushing for a 51% share in the company which would give them the upper share, where as Subaru are reportedly looking fora 50:50 share. Clearly SAIC are used to dealing with the likes of GM and VW, and if they can beat these two auto giants into a submission, then talking shop with Subaru might be much easier, although Subaru seem to be holding solid with their 50:50 demands.

The chance of Jiang Ling and Chery partnering with Subaru seem to be low, but FAW might be in with a large chance to due their partnership with Toyota, who in turn are a major share holder in Subaru’s parent company Fujitsu Heavy Industries. Talks with BAIC seem to be going well, and with BAIC’s close relationship with the central government, and also SUV producing background it might be a good choice for Subaru to get back into China with a like minded partner.