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As we all know, Subaru brand has been imported into China since entering the domestic market, while domestic Subaru models are produced overseas. A few days ago, it was reported that Subaru will stop production at its Japanese factory from August to September to reorganize its product line. This means that domestic Subaru models may be affected to some extent.

According to news reports, Subaru will carry out comprehensive replacement, annual change, configuration adjustment and shutdown of its models from August to September, completely rearranging the product line. The plan will include a comprehensive replacement of LEVORG models, an annual change in JUSTY models, configuration adjustments for models such as the Impreza Sport, Impreza G4, XV, Forester (with 1.8T engines) and Aohu, as well as the discontinued Lishi B4 and BRZ plans.

In fact, the Subaru brand changes its models and reorganizes its product line every year, but this year it happens to encounter a number of models under the Subaru brand, and the impact of the epidemic allows it to directly stop production and adjust its models. It is reported that the production suspension time will continue until the new LEVORGyu on August 20 after the launch, only began to complete the sixth consecutive model change and listing.

At present, Subaru has only one complete vehicle factory in Japan, Gunma Manufacturing Co., Ltd., where 60% of Subaru's new vehicles are produced and 80% are exported to foreign markets as complete vehicles, including a total of five models exported to the Chinese market.

Earlier, Subaru, affected by the epidemic, also shut down the plant for 17 working days in early April, but finally resumed production in June. Subaru said that the normal daily output of the Gunma County vehicle production plant was 2300 vehicles, so the previous shutdown caused the company to significantly reduce production. Last year, the output of the Gunma plant was 619,000 vehicles. Subaru originally expected the output of the plant to increase to 690,000 vehicles by 2020, but now it seems a bit difficult.

Although the Subaru brand is mainly sold in the US and Japan, the Chinese market has low demand and ranks fifth in its sales market, accounting for only 2% of the Subaru brand in 2019. However, as an imported model, it naturally needs to book a car, and the shutdown plan will inevitably have an impact on the domestic market.

At present, Subaru is still selling five models in China, including Lishi, XV, Forester, Outback and BRZ models. Although its quality and safety have been well received by domestic consumers, sales are hard to say optimistic. Sales have continued to decline in recent years since peaking at 57,000 vehicles in China in 2011, with Subaru selling only 25,000 vehicles in China with global sales of 1.042 million vehicles in 2019. Sales in china rose 3.5% year-on-year to 6,000 vehicles, compared with 5,700 in the same period last year, helped by a market recovery, according to subaru's latest quarterly figures.

At the same time, hit hard by this year's epidemic, Subaru also recently released its latest earnings report, showing an operating loss in the first quarter (April-June) of its fiscal year (ending March 31,2021). Subaru lost 15.7 billion yen ($146 million) from operations, compared with a profit of 92.2 billion yen ($859 million) a year earlier; a net loss of 7.7 billion yen ($71.7 million), compared with a profit of 66.5 billion yen ($619 million) a year earlier; revenue fell 45% to 457 billion yen ($4.26 billion); and global sales fell 49% to 133,100 vehicles.

In response, Subaru expects operating profit to fall 62% to 80 billion yen ($745 million); net profit to fall 61%; and global sales to fall 13% to 900,000 vehicles.

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