Fuji Heavy Industries, the Japanese maker of Subaru cars, said Wednesday that it's discussing a plan to produce Subaru vehicles in China with Chinese automaker Chery Automobile Co., the Beijing Business Today reported Thursday.

The two automakers will reportedly invest approximately 30 billion yen ($358 million) to build a factory in Dalian, a city in Northeast China. The factory will produce 50,000 mid-sized vehicles annually starting from 2013, and eventually produce 150,000 vehicles a year, Japanese media reported.

A Fuji Heavy spokesman confirmed it was in talks with Chery, but added that Chery was one of the many Chinese automakers it's currently in discussions with.

Fuji Heavy CEO Ikuo Mori disclosed that a decision on auto production in China will come by next March.

China's business press carried the story above on Thursday. China.org.cn has not checked the stories and does not vouch for their accuracy.