Gasgoo.com (Shanghai January 7) - Head of China's largest automobile dealership group, Pangda Group CEO Pang Qinghua, has denied rumors that his company is preparing to form a joint venture sales enterprise with Japanese manufacturer Subaru, Beijing Business Today reported today. However, Mr. Pang's statement has not put a complete halt to speculation that Subaru will establish a JV in China with a domestic company.
Commenting on the matter, Mr. Pang (pictured) said that he had not visited Japan in a long time and that Subaru had not contacted his company. Mr. Pang added that for discussing a large investment, like forming a JV, he would prefer to wait for interested parties to contact him first. Subaru's representatives, for their part, refused to comment on the issue, saying only that the manufacturer had made no official statement on the matter.
Despite the denial, many industry experts still maintain that there is a possibility a deal between Subaru and a Chinese enterprise such as Pangda may be made. "As far as a joint venture is concerned, even if it was in the planning phase, both parties would try to maintain secrecy, waiting until the last moment to make an announcement to the public," one anonymous analyst said.
Subaru's key problem in China is that it lacks a domestic manufacturing site for its vehicles. Head of Subaru's parent company, Fuji Heavy Industries President Yasuyuki Yoshinaga, has previously expressed his desire to establish a factory for the manufacturer in China. At that time, rumors of a possible partnership between Subaru and Chery were commonplace, before Chery finally announced that it would form a JV with British luxury marquee Jaguar Land Rover.
