Subaru of China (SOC), a China-based sales subsidiary of Fuji Heavy Industries (FHI), has completed procedures to form a joint venture with Chinese auto dealer group Pangda Automobile Trade.
This deal is aimed at consolidating Subaru's sales, marketing and dealer management operations into SOC. Earlier these were managed on a region-by-region basis by local sales companies.
As part of the new structure, SOC plans to implement include consistent sales and marketing initiatives, advance strategic dealer development and strengthen its profit base to enhance the Subaru brand and sales in the Chinese market.
SOC, a distributor that manages and oversees Subaru car sales throughout China, will start full-scale operations in October 2013.
FHI, which is the maker of Subaru automobiles, holds a 60% stake and Pangda a 40% stake in the newly formed joint venture. The capital of SOC has been increased from JPY600m ($6m) to JPY2.95bn ($29.6m).
Pangda chairman Pang Qing Hua will act as the chairman, while FHI vice president will become the president of the new organization.
