
Fuji Heavy Industries owns Subaru. But, it doesn't have enough small cars to sell in Europe. Toyota Motor Corp. to the rescue.
FHI will sell Toyota made cars under its (FHI's) brand name in Europe.
The EU has new environmental regulations going into effect in 2008. There is also a demand for more fuel-efficient small vehicles in because of soaring gas prices.
Since FHI does not have enough small cars of its own, it will buy cars from Toyota and then resell them under its own name in Europe.
Toyota is happy about the deal. Why not? They get to sell more cars. Also, Toyota will manufacture more cars thus being able to cut cost from the increased production.
Suzuki Motor Corp. has a similar deal with Nissan Motor Corp to supply new small cars to Nissan for resale in Europe.
Perhaps I shouldn't be surprised, but still, somehow it strikes me as strange. Why don't Suzuki and Toyota go to Europe and sell the cars themselves?
But, then if I could get someone to do it for me....
What do you think?
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so, subaru is going to buy toyota's and sell them as subaru's? that seems strange to me. oh well, good deal for toyota though.
Posted by: james roper | August 22, 2006 9:14 AM | Permalink to Comment