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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 Concept | Next WRX ... with driver assist?

VIZIV is a portmanteau, an invented moniker that Subaru has affixed to a series of concept cars it has shown over the past few years. The name is intended to combine the notions of vision and innovation inherent in these fantastical vehicles, which, like all concepts, presage a future that never comes. How else to describe a five-passenger, scissor-doored, diesel, hybrid, electric, all-wheel-drive, shooting brake? These reveries and chimeras have, in successive iterations, become a bit more ... realistic, or at least closer to the realm of possible. Witness the Viziv-7 shown last year at the L.A. Auto Show, quite clearly a near-production-ready preview of the brand's forthcoming three-row, seven-passenger crossover — and a long-expected replacement for the ghastly, Hercule Poirot-faced Tribeca from some years back. So what are we to make of the latest Viziv, the Viziv Performance Concept, just unveiled at the Tokyo Motor Show? A muscular, flare-fendered, four-door sport sedan, the VPC is, in Subaru's own words, intended to "deliver enjoyment and peace of mind" to its customers while evoking a design philosophy of "DYNAMIC x SOLID." [Subaru insists that it is not yelling, merely being emphatic.] The vehicle is also meant to integrate the latest in driver-assistance technology, built around Subaru's EyeSight distance cruise control and collision prevention system. It is surprisingly attractive, for a Subaru, which is to say, more than simply functional and unpretentious and rugged with a smattering of premium materials. It looks kind of French. "We utilize traditional Subaru shapes like the flared fenders and the hood scoop," says Mamoru Ishii, general manager of the design department's product planning division. "But we wanted to enhance the three-dimensional sculptural forms, to express more of the shadows." So it looks like a Subaru. But it also looks kind of ... fast. So is this thing the new WRX? Size and stature wise, that supposition would make sense. Especially since that model is now a wholly separate vehicle line spun off of the Impreza platform some years back and that the next generation is expected to reappear, in novel form and with its own identity, for the 2020 model year, making a conceptual appearance now timeline-proper. "It's a design study for a sport sedan, and WRX is one of them," says Ishii. "It's not so far from the next generation." Not so far away, but not so close.

Subaru plans to electrify entire range by the middle of the 2030s

Nipping infinite rumors in the bud, Subaru confirmed the Outback, the Forester, the BRZ, the WRX STI, and every other car it makes will go utilize some form of electrified powertain or disappear by the middle of the 2030s. The Japanese automaker announced it plans to kick exclusively gasoline-powered cars out of its global portfolio in about 15 years' time. The announcement comes in the wake of ever-stricter emissions regulations around the globe, notably in China and in the European Union. The firm isn't going to turn the tap off overnight, though. Toyota owns an 8.7% stake in Subaru, and the two partners are jointly developing a pair of electric cars due out during the 2020s. Others will inevitably follow. By 2030, hybrid and electric models will represent at least 40% of Subaru's annual global output. In the meantime, Subaru is funneling an immense amount of money into adapting Toyota's hybrid technology to its vehicles. The gasoline-electric variant of the Crosstrek introduced in 2018 a product of this collaboration. Executives outlined plans to release a "strong hybrid" again built with Toyota parts, though they stopped short of providing more details. They also stressed their goal isn't to achieve mere badge-engineering. "Although we're using Toyota technology, we want to make hybrids that are distinctly Subaru. It's not only about reducing CO2 emissions. We need to further improve vehicle safety and the performance of our all-wheel drive," affirmed Tetsuo Onuki, Subaru's chief technology officer, during a briefing Reuters attended. His comments suggest all-wheel drive will continue to define the members of Subaru's range in the electric-only era. The configuration has been one of the brand's strongest selling points for decades, and it helped it grow from a niche brand peddling obscure cars to a major mainstream automaker in the United States, so giving it up would be marketing suicide. The horizontally-opposed engine is Subaru's second signature, it's what the C-shaped daytime running lights seen on its cars are inspired by, but Onuki confirmed it will no longer be the only way Subarus are motivated.