* Targets 900,000 global sales in 2015/16
* North America, China account for bulk of growth
* Targets 2015/16 op margin of 6 pct, profit of 120 bln yen
* New 5-year plan excludes awaited details on China joint
* 2011/12 op profit forecast 30 bln yen vs consensus 48.2
(Adds 2011/12 forecasts, details)
By Chang-Ran Kim, Asia autos correspondent
TOKYO, July 6 Fuji Heavy Industries Ltd
, the maker of Subaru cars, said on Wednesday it aims to
boost global sales by 40 percent to 900,000 vehicles in the next
five years, fuelled by four new models including its first
Announcing a new five-year business plan, Fuji Heavy also
said it would target an operating profit of 120 billion yen
($1.5 billion) and a profit margin of 6 percent in the year
ending in March 2016, based on an average dollar rate of 90 yen
and euro of 120 yen. Last business year, its operating profit
was 84.14 billion yen.
For the current business year to March 2012, the smallest of
Japan's eight car makers forecast a 64 percent fall in operating
profit to 30 billion yen, far short of an average forecast of
48.2 billion yen in a survey of 18 analysts by Thomson Reuters
It expects 2011/12 net profit of 35 billion yen, down 30
percent, on revenue of 1.48 trillion yen.
Fuji Heavy had been in the fast lane until the earthquake
and tsunami on March 11 interrupted the growth spurt. Last year,
the company reported its highest operating profit in nine years
and its best net earnings ever.
President Yasuyuki Yoshinaga, appointed to his post two
weeks ago, said the bulk of the sales expansion would be in
China and North America, which would account for a combined
increase of 190,000 vehicles by 2015/16.
The plan, however, fell short of identifying a local Chinese
partner with which to build vehicles in the world's biggest car
market. Fuji Heavy executives had said they hoped to finalise
those plans along with the unveiling of the midterm plan.
"We are very eager to announce our plans for China soon,
since that is the key to easing the capacity restraint that we
face now," Yoshinaga told a news conference.
"But we are still in the process of finalising the
negotiations, and hope to be able to give you the details soon,"
Sources with knowledge of the deal told Reuters in May that
Fuji Heavy had agreed in principle to make Subaru cars in
northeast China with Chery Automobile, the country's largest
Foreign automakers are required to form joint ventures with
a Chinese company to build cars for the local market, with
ownership limited to 50 percent.
SALES OF 1 MILLION VEHICLES IN 10 YEARS
By the final year of the five-year plan, Fuji Heavy expects
its sales in North America to grow by 70,000 vehicles to
380,000, and in China to triple to 180,000 vehicles, making it
its second-biggest market ahead of Japan.
Elsewhere, the maker of Legacy and other all-wheel-drive
cars said it would aim to expand in the booming Southeast Asian
region, announcing a deal to consign production in Malaysia to
the Tan Chong Group . Production will begin in October
2012 at an existing factory of Tan Chong Motor, with capacity of
5,000 vehicles a year.
Further out, Fuji Heavy said it aimed to sell 1 million
vehicles a year globally within the next decade.
Shares of Fuji Heavy ended morning trade up 1.1 percent at
633 yen before the announcement, which came during the midday
($1 = 81.080 Japanese Yen)
(Editing by Chris Gallagher)