Fuji Heavy Industries, Ltd. (FHI), a global manufacturer of transportation and aerospace-related products and the maker of Subaru cars, released its plan of their alliance changes on Wednesday.

FHI and General Motors Corp. (GM) agreed to dissolve its strategic alliance and capital relationship and GM, the top shareholder of FHI, will sell all the FHI stocks they hold.

In December 1999, FHI and GM agreed upon a capital and strategic alliance. Since GM purchased about 20% of FHI shares and became the top shareholder of FHI, both companies worked together for various synergic effects. The joint efforts over the past 6 years period resulted in achievements such as global procurement, OEM business, technology exchanges, etc. However, the two companies concluded that mutually beneficial large joint projects are unlikely in future, and came to agree to terminate their strategic and affiliated company relationship.

Out of the 157 million FHI stocks that GM holds, which accounts for about 20% of the FHI outstanding common stocks, GM will sell 68 million stocks, 8.7%, to Toyota Motor Corp. (TMC). GM will sell the remaining 89 million stocks, 11.4%, in the market. At the same time, FHI plans to purchase 90 million stocks as Treasury Stock.

FHI and GM will discuss on the future direction of ongoing cooperative projects. As for the joint development project of a crossover vehicle between FHI and Saab, which was announced last year, FHI and GM have basically agreed to stop the development. FHI has decided to record extraordinary loss of 5,000 million yen, which is a part of the development cost, in this fiscal year.

At the same time, FHI has revised its annual profit estimate announced on 12th May, after reviewing the recent circumstances such as weaker yen, sales momentum, etc. The revised figures are; Operating profit at 36,000 million yen (up 5,000 million from the previous estimate), Ordinary profit at 29,000 million yen (up 2,000 million yen), and Net profit at 12,000 million yen (down 3,000 million).

Upon TMC obtaining FHI’s shares, TMC and FHI agreed to start studying business collaboration. The two companies plan to set up a joint steering committee to study possible joint projects to seek synergic effects in the areas of research & development and production, and to supplement each other’s technological development.

FHI is going ahead with the 5-year business plan ending March 2007, the FDR-1 plan, and the situation change this time will not affect FHI’s relentlessness to achieve the target.

Peugeot at Sydney's Motor Show
6th October, 2005
The 2005 Australian International Motor Show will prove to be one of the biggest ever shows for the Peugeot brand in Australia ..... more

Audi launches new TDI engine for A4
5th October, 2005
Next week’s 2005 Australian International Motor Show, in Sydney, will mark the Australian launch of Audi’s latest hi-tech turbo diesel engine for the best-selling A4 ..... more

Mazda Has Record September
4th October, 2005
Record September retail sales of 4,931 have encouraged Mazda Australia to revise its 2005 sales target to a benchmark 67,000 ..... more

Australian Debut for Saab SportCombi
4th October, 2005
The all new Saab 9-3 SportCombi will make its first appearance in Australia next week at the Australian International Motor Show ..... more

Nissan Tiida Sport Concept Coming To Sydney
3rd October, 2005
The Nissan Tiida Sport Concept, which will make its Australian debut at the 2005 Australian International Motor Show, is the latest in a series of dynamic performance/youth concept vehicles ..... more

New Appearance For Subaru Impreza
27th September, 2005
Subaru’s Impreza range has taken on a new appearance for 2006, with engine changes, new models and new styling ..... more

I'm Always Dreamin'
20th September, 2005
Codenamed ‘Project Tempest’, development work on a core range of affordable, high performance cars, is now at an advanced stage ..... more

Subaru Breaks August Sales Record
6th September, 2005
Subaru achieved record August sales of 3,101 vehicles, according to official VFACTS figures released yesterday ..... more

Subaru Impreza WRX STI spec C
18th August, 2005
The WRX STI spec C is very suitable for racing due to its lightened body and high performance engine ..... more

Subaru Liberty 3.0R spec.B is Automatic Choice
29th July, 2005
Subaru has added a SPORTSHIFT* automatic version of the six cylinder Liberty 3.0R spec.B to its 2006 range ..... more

Subaru Impreza WRX Restyled for 2006
25th July, 2005
We have details of America's Impreza WRX for 2006. You can expect the 2006 Subaru Impreza line-up to be released in Australia in a few months time ..... more