May 17, 2002
Fuji Heavy Industries Introduces New Management Structure
-- Three non-automotive operations units will operate as internal companies --

�@Fuji Heavy Industries, Ltd. (FHI), a global manufacturer of transportation and aerospace-related products and the maker of Subaru automobiles, today announced a new management structure that will focus on automobile operations as its core business. Effective June 1, 2002, the FHI holding company-style management structure will comprise the Subaru Automotive Business Unit; three internal, non-automotive companies; and three other non-automotive divisions. The three internal companies will be Aerospace, Industrial Products, and Eco-Technology, and the three non-automotive divisions will be Bus, House, and Transportation.

�@At the same time that it repositions the strategic place of FHI's Subaru automobile operations, the company's reorganization plan also selects existing non-automotive business lines that show promise for growth and makes them independently operating internal companies. The most distinctive feature of FHI's new structure is a much greater level of autonomy in management for both the Subaru Automotive Business Unit and internal companies that will enable increased efficiency in decision-making processes and promote a positive change in FHI's corporate culture. Each autonomous business unit and internal company will be responsible for its own performance and financial results with an emphasis on profit/loss and asset management.

�@The Subaru Automotive Business Unit will feature a cross-functional Subaru Strategy Development Division that will oversee the planning of future growth and innovation within the automobile-related departments. The Bus and Transportation divisions will review and streamline their operations under the new management structure. The Housing division, although quite small presently, will seek steady growth by exploring new markets. In addition, FHI's head office will maintain a group-wide management planning unit, a management administration unit, and a compliance unit to strengthen group-wide planning and compliance functions.

�@Under the new management structure, the three internal companies are given levels of independence and autonomy that will further expedite management decisions and improve their respective performances. The Aerospace, Industrial Products, and Eco-Technology companies will have complete authority to add or abolish their own departments, to appoint managers, and to hold company board meetings on important issues. In contrast to their levels of authority as divisions, the new internal companies will now be able to decide on asset acquisitions of much higher sums. Furthermore, they will be responsible for their own asset management, particularly, their profit after dividends. The concept of financial autonomy within divisions has been promoted at FHI since June 1989, when the company first introduced the divisional management system. In addition, FHI appointed divisional executives to be responsible for the performance of each division in 1999. The new management structure has taken yet another step to strengthen the independence of the various business units.

�@Looking forward, FHI plans to expand on autonomous management within different business and product units and to enlist FHI group subsidiaries and affiliated companies to contribute more appreciably to business-based performance and financial results.

New Management Structure


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