Subaru Plans More Fuel-Efficient Cars

Japan's Fuji Heavy Industries, maker of Subaru cars, plans to design more fuel-efficient vehicles as it shifts resources to the U.S. and European markets, its president said in remarks published Aug. 8. Fuji Heavy is partly owned by Toyota Motor Corp.

Ikuo Mori, president of Fuji Heavy Industries Ltd., said the company planned new fuel-efficient vehicles in Europe to meet stricter exhaust gas rules. "We need to add fuel-efficient compact models to our lineup" in Europe, Mori told the Nihon Keizai Shimbun business newspaper. "We're pursuing all avenues, including developing our own models or procuring them from other companies," he said.

Mori said the company is expanding its U.S dealership network and introducing new car models in Europe. "Investment returns are bigger in Europe and the U.S. than in the domestic market, where demand remains stagnant," Mori said.

Additionally, Toyota and Fuji Heavy have been jointly developing a new hybrid vehicle.

Copyright Agence France-Presse, 2006

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