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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.

Toyota updates 86 in Japan with this weird special edition

In their constant drive for perfection, Japanese automakers Toyota and Subaru have both announced some minor updates for their jointly produced sports car specifically for their domestic market. Both the Toyota 86 (known in these parts as the Scion FR-S) and the Subaru BRZ are getting a revised version of the electric power steering system they were designed with in the first place as well as a reworked suspension. The more intriguing news, though, is the strange restyling Toyota is offering on the 86 Style Cb edition. Ditching the aggressively angular front end of the existing model, this special edition gets rounded headlamps and an extended nose to give it a much less severe face. The Toyota 86 Style Cb is also being offered with an optional two-tone paint scheme and gets unique LED turning indicator strips, a special badge on the bulbous snout and revised interior trim. We'll chalk it up to a matter of personal taste, but as far as JDM specials go, this special edition isn't one over which we'll be terribly disappointed if it never makes it to US showrooms. We'll be sure to keep you posted if and when any of the mechanical updates make the trip across the Pacific, though. Related Video:

Subaru introduces special BRZ and WRX STI models in Tokyo

Subaru has given its BRZ and WRX STI models some more of that Subaru Tecnica International feel. A special JDM model of each was presented at the Tokyo Motor Show. The BRZ gets a STI Sport range-topper version, which Subaru says is sharper and more responsive thanks to a stiffer front suspension and new "V-braces", along with STI-tuned Sachs dampers. The 18-inch wheels are bespoke to the model version, and the interior has been given a smarter once-over with two-tone shades. In addition, there is a Cool Grey Khaki edition, which will be limited to 100 units and the lucky buyers will be picked by a lottery. No matter how special the BRZ STI Sport is, the power figures are unchanged from the stock 197 horsepower. The S208, based on the WRX STI, will now be Subaru's high-performance king on offer. Following the S207 unveiled in 2015, the S208 is more powerful and has a lower center of gravity thanks to a carbon roof. The power output is 329 horsepower instead of 323, and the STI-enhanced parts include what Subaru calls a DampMatic II front suspension and active torque vectoring both front and rear. Wheels are BBS-built in 19-inch size, brakes are Brembo. There will only be 450 S208 models made, and they will be Japan-only; also on offer is a Nurburgring-themed NBR Challenge Package in 350 units. The editions will be separated by color options: the regular S208 is available in blue or white, and the NBR can be had in the pictured Cool Grey Khaki as well. Related Video: