Chery-Subaru JV rumored to be announced within two months

Gasgoo.com (Shanghai August 3) - The rumored joint venture between Chery and Subaru has already entered the discussion stage, the Beijing Youth Daily reported today. According to the newspaper, sources from Chery will be making an official announcement within two months.

The Chery and Subaru production site will reportedly be situated in Dalian, Liaoning. The factory will begin with a production capability of 50,000 vehicles, which will later expand to 150,000 vehicles, becoming Subaru's second largest overseas production site. The Forester crossover (pictured above) looks to be a prime choice for the JV's first model manufactured in the country. Likewise, a new SUV priced under the Forester and targeted towards China, similar to the Impreza XV (pictured below) which was shown at this year's Auto Shanghai exhibition, may be a more likely alternative.

Some in the industry are worried that after domestic production begins, Subaru vehicles will lose their 'foreign appeal', which would might adversely effect sales. Still others believe that lower prices for equal quality may attract more consumers to Subaru.