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Toyota to boost its Subaru stake to more than 20%

TOKYO — Toyota Motor Corp plans to raise its stake in Subaru Corp to more than 20% from around 17% now, a deal that would also see the smaller firm invest in Japan's top automaker, two people with direct knowledge of the matter said on Friday. The deal is due to be approved at a Toyota board meeting on Friday, the people said, declining to be identified because the information has not been made public. The investment would come a month after Toyota and another smaller Japanese automaker, Suzuki, said they would take small equity stakes in each other. Such tie-ups highlight how automakers are scrambling to chase scale, manage costs and boost development. Traditional car makers, especially smaller ones like Subaru and Suzuki, are struggling to meet the fast pace of change in an industry being transformed by the rise of electric vehicles, ride hailing and autonomous driving. Toyota's investment is likely to cost more than 70 billion yen ($650 million) based on Subaru's stock market value, said the Nikkei business daily, which first reported the news. Subaru is likely to reciprocate with a stake in Toyota that would roughly equal the value of Toyota's additional investment, one of the people told Reuters. The companies have long worked together on projects such as the Toyota 86 and Subaru BRZ twins. At one time, Subaru built Toyota Camrys in its Indiana plant. Representatives for both Toyota and Subaru said the news was not something that had been announced by their companies. "The plan appears to be to ultimately make Subaru a fully owned subsidiary, to help create a 'mega Toyota.' This is the first step towards that," said Takeshi Miyao, managing director of Carnorama, a consultancy. "It's all about building scale." Subaru is particularly strong in sport-utility vehicles (SUV) and all-wheel-drive technology. The two automakers in June said they planned to jointly develop an electric sport-utility vehicle on a platform produced together, to split costs. Car markers around the world have been joining forces to slash development and manufacturing costs of new technology. Ford Motor Co and Volkswagen AG have said they will spend billions of dollars to jointly develop electric and self-driving vehicles. Toyota seems to be particularly keen to build scale now by investing in smaller, domestic automakers, rather than forging cross-border tie-ups like some of its rivals.

Subaru Viziv Performance STI Concept has us dreaming of a future WRX STI

Subaru has revealed the Viziv Performance STI Concept at the Tokyo Auto Salon, and it's pretty much what you would expect. It's very closely related to the Viziv Performance Concept from the Tokyo Auto Show last year, but it's been given a bevy of flashy STI parts to make it aggressive. Up front, a deep lip spoiler complements a redesigned front bumper that does away with the two outboard air intakes and opens up the center one. According to a Subaru designer, it improves the cooling and aerodynamics. Having the blocked-off intakes on each side with STI logos is also a nice throwback to old Impreza STI models that often had blank panels with the logo over the foglight openings. Around the side are side skirts, and at the back are small extensions to the same diffuser from the earlier Viziv concept. And of course, there's a massive wing at the back. What's interesting is how much of the normal Viziv remains under the STI logos, decals and wings. The fenders look nearly untouched, and the hood scoop is the same size and shape as the standard concept. Even the exhaust, taillights and headlights are all the same. Then again, between the production WRX and WRX STI, the only real visible differences are the rear wing, wheels and front spoiler. And, if the Viziv Performance concepts preview future WRX and STI models, following that model makes sense. Of course the big differences between WRX and STI models are under the skin. Unfortunately, Subaru doesn't reveal a thing about what hypothetical powertrain is under this STI. Maybe we shouldn't be so surprised though, since the company didn't say anything about the regular one either. Only the use of a flat-four and all-wheel drive are certain. For that matter, even the styling isn't truly certain. While we can hope that the next WRX and WRX STI have the muscular look of these concepts, we have reason to be skeptical. But instead of getting cynical and sad, let's just enjoy this for what it is: a cool STI concept. Related Video:

Subaru recalls new Forester over pedal entrapment fears

Pedal entrapment and unintended acceleration are hot-button topics these days, so automakers are always staying alert for potential problems. For Subaru and its newly introduced 2014 Forester, the National Highway Traffic Safety Administration has issued a recall due to improperly manufactured floor mats that could become an obstruction for the gas, brake or clutch pedals. The good news, of course, is that even if drivers experience this problem, the 2014 Forester comes standard with brake override.
At issue with the floor mats on 10,137 Forester models built between January and March of this year is that the resin material used on the underside of the mats can curl when exposed to heat. If the leading edge of the driver's mat curls enough, it can come in contact with the pedals making acceleration, braking and shifting more difficult - possibly resulting in a crash. To fix the problem, Subaru is replacing the entire set of floor mats in all of the affected units. The official NHTSA recall notice is posted below.