P.M. BRIEFING : Subaru Plans U.S. Engine Plant
From Times Wire Services
TOKYO —
Japan’s Fuji Heavy Industries Ltd., manufacturer of Subaru cars, plans to build an engine plant in the United States, a company spokesman said today.
At the same time, Fuji said it has offered to acquire all Subaru of America Inc. shares it does not already own for $6 each, or about $144 million. Fuji now owns about 49.6% of the U.S. marketing unit for Subaru cars.
Subaru shares gained 75 cents this morning, trading at $5.875 on the over-the-counter market.
Fuji said the engine plant will be built at an unspecified date and will allow it to raise local parts procurement for its U.S.-built cars to 75% from the current 50%.
The company has already acquired a machinery component factory in a suburb of Lafayette, Ind., the spokesman said.
