US subsidiary · Automotive
Subaru puts its US companies under a new $924 million holding company
- Parent
- Subaru Corporation (Tokyo)
- New US unit
- Subaru USA Holdings Inc. (new US holding company), United States (Delaware company)
- Value
- $924M capital (about ¥106.3B)
- Status
- Planned to start on April 1, 2022. Subaru's US units have since been described as part of the US holding company.
- Date
- 2022-03-03
Subaru set up a US holding company with capital of $924 million and moved into it, as an in-kind contribution, all its shares in four US subsidiaries: Subaru of America (sales), Subaru of Indiana Automotive (the Lafayette factory), North American Subaru and Subaru Research & Development. The new company provides shared corporate services to those units.
Why it matters
The US is Subaru's biggest market by far. Putting sales, production and R&D under one US parent strengthens local management and internal controls, a step many Japanese automakers have taken as their US business outgrew the head office's direct oversight.
The filing
The holding company, Subaru USA Holdings, was registered in Wilmington, Delaware. Its $924 million of capital equaled about ¥106.3 billion at the time. Subaru said the change would have little effect on its group results.
The Indiana plant
Subaru of Indiana Automotive, in Lafayette, is Subaru's only factory outside Japan. It started in 1989 as a joint venture with Isuzu and has built only Subarus since 2016. In 2022 it had more than 6,000 workers, built about half of the Subarus sold in North America and made its five-millionth vehicle.
Sources
Kakehashi M&A News home
