Fuji Heavy Industries, owner of the Subaru brand, Tuesday has agreed in principal to join hands with Chinese private automaker Chery Automobile to produce Subaru vehicles in China, according to Beijing Business Today.

The Tokyo-based transportation conglomerate will join with Chery set up a joint plant in Dalian, northeast China's Liaoning province, the newspaper said, citing foreign media.

Chery spokesperson Jin Yibo said he had "no information" concerning the deal. Subaru China also refused to comment, saying they hadn't received confirmation from headquarters.

But a person close to Chery said the two automakers have agreed on a number of major terms and conditions and are now awaiting approval from Chinese regulators.

The companies have decided to remain low-key on the deal for now. An official statement on the partnership will be released after the Chinese government approves the deal.

The inside source also said Fuji Heavy and Chery will invest 30 billion yen (US$366.3 million) in the Dalian plant, which will have an initial annual capacity of 50,000 units, eventually rising to 150,000.

If the deal goes through, China will become Subaru's second largest overseas production base after the United States.

斯巴鲁汽车的生产商日本富士重工昨日已经原则上同意与中国汽车生产商奇瑞汽车携手合作，共同在中国生产斯巴鲁汽车。

富士重工与奇瑞将会共同在中国东北的辽宁省大连市组建工厂生产斯巴鲁汽车，报道援引外电消息称。

奇瑞汽车新闻发言人金弋波表示，“目前没有信息可供发布”。而斯巴鲁中国方面也表示，尚未收到日本方面的确认，不愿对此事过多置评。

一位接近奇瑞汽车的人士表示，双方已在许多关键条款上达成一致，正等待中国政府监管机构批准。

因此双方暂对此事保持低调。有关双方合作协议的正式官方消息将在审批结束后公布。

据上述消息，富士重工与奇瑞将共同投资300亿日元在大连建厂。首期建成后将形成年产5万辆整车的规模，最终产能目标为15万辆。

如果交易成功，这将使中国成为继美国之后，斯巴鲁第二大海外生产基地。