BAW to close deal with Subaru by October

• Source: Global Times
• [14:13 July 26 2010]
• Comments

Beijing Automobile Works (BAW) will cooperate with Subaru Japan and its biggest agent, Power Diversity Automobile Trade on a joint venture (JV) project, in which BAW, Power Diversity and Subaru will hold 25 percent, 25 percent and 50 percent stakes respectively, according to quoted sources from the Chinese media Monday.

The new JV's headquarters and production factory will both be located in Beijing and the first China-made model will be Subaru SUV.

The source emphasized that the success of the project depends on negotiations between other domestic competitors with Subaru.

However, according to reports, Subaru is not optimistic about BAW's investment capacity, management ability and market analysis skills.