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January 8, 2008 |
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FUJI HEAVY: To Make Low-Price SUV with Toyota Motor Fuji Heavy Industries Ltd. has been consigned by Toyota Motor Corp. to develop and produce a new low-price sports car targeting young drivers, sources disclosed to The Yomiuri Shimbun. According to the paper's sources, Fuji Heavy and Toyota are in negotiations toward an agreement within the current fiscal year and seek to put the vehicle on the market around 2009. The car, which is to be marketed overseas, including the U.S., will be equipped with a 2-liter engine and rear-wheel drive system. It will be priced around JPY2 million and positioned as an entry-level car. Fuji Heavy, states The Yomiuri Shimbun, plans to take the development initiative and base the car on its horizontally opposed engine and chassis design used in its existing models. The Yomiuri Shimbun adds that the sports car will be sold solely under the Toyota brand and not under Fuji Heavy's Subaru brand. Sources said that Toyota's consignment benefits Fuji Heavy by boosting engineer morale and improving operating rates at plants while Toyota, quickly expanding worldwide and needing to make up for a shortage of development engineers, finds it efficient to use Fuji Heavy's engineering power. About Fuji Heavy Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. -- http://www.fhi.co.jp -- is manufacturing company engaged in four business segments. The Automobile segment is engaged in the manufacturing, repair and sale of light vehicles, compact cars and standard vehicles. The Industrial Machinery segment offers motors, machinery for agricultural, forestry and constructional use, as well as other machinery and equipment. The Aerospace segment offers airplanes, aerospace-related equipment and parts. The Others segment is engaged in the manufacturing, repair and sale of dustcarts, bus-related parts and houses, as well as the leasing of real estates. The Company distributes its products in both domestic and overseas markets. As of March 31, 2007, Fuji Heavy Industries has 109 subsidiaries and nine associated companies. The Company has a global network. Fuji Heavy still carries' Standard & Poor's Ratings Services' BB+ long-term foreign and local currency Issuer Default Ratings, with a stable outlook. The rating was announced on June 17, 2005. S&P's rating based it on Fuji Heavy's diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry. |
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