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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.

8 car technologies designed to keep you safe

Technologies are always advancing forward, especially in your vehicle. As more safety technologies are being introduced into the market, it can be hard to keep track of everything. So here are 8 technologies designed to keep you safe on the road. Want more coverage? Head over to http://bit.ly/2CcOngW Ford Kia Mercedes-Benz Subaru Toyota Volkswagen Volvo Autoblog Minute Videos Original Video FCA automatic emergency braking

2015 Subaru WRX looks to set a new benchmark in LA

Subaru has just taken the wraps off of the new, 2015 WRX at the 2013 Los Angeles Auto Show. The totally redesigned sedan - the five-door option won't be offered - is more powerful, more fuel efficient (with the right transmission), better looking and more intelligently designed than the car it's replacing.
A new 2.0-liter, direct-injected, turbocharged flat-four sits thumping away under the hood, its top-mount intercooler getting force-fed air by a rather prominent hood scoop. Power output sits at 268 ponies and 258 pound-feet of torque, accessible between 2,000 and 5,000 rpm. While the new car only has a three-horsepower advantage on the current Impreza WRX, it delivers 14 more pound-feet of torque and delivers peak output across a much wider swath of the rev range (the old car netted 244 lb-ft at 4,400 rpm). All this extra grunt comes at a negligible weight penalty - a 2015 WRX with the six-speed manual is just 59 pounds heavier than a 2014 model.
As we said, a six-speed manual is will be available, and as a bonus, it packs one additional cog over the current, 2014 WRX's five-speed DIY transmission. So equipped, the WRX will scamper to 60 in just 5.4 seconds. As for the previously-confirmed continuously variable transmission, it will come with both six- and eight-speed manual shift modes, but will take half a second longer to get to the magical 60-mile-per-hour mark.