Fuji Heavy to cut automobile output

Fuji Heavy Industries Ltd., the maker of Subaru-brand automobiles, will slow down some of its production lines to reduce its output of passenger cars, including its best-selling Legacy model, in response to sluggish global vehicle sales. The company’s move comes in the wake of an announcement that revamped Legacy cars will be equipped with fuel-saving continuously variable transmission (CVT). The company’s production cuts in Japan and overseas for the fiscal year ending March 2009 has totaled 80,000 units, accounting for some 12% of its initial production plan of 649,000 units for the year. The company expects an operating loss of ¥9 billion (US$98.03 million), a ¥32 billion (US$348.56 million) difference from its previously forecast ¥23 billion (US$250.53 million) profit. (January 21/26/30, 2009)