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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.

2019 Subaru Legacy, Outback cost more, but get more features

As with the Subaru Impreza, the 2019 Subaru Legacy and 2019 Subaru Outback are seeing price increases for the new model year. The starting price for the base model Legacy 2.5i starts at $23,430, an increase of $375 over the 2018 model. The Outback's starting price of $27,320 is up by $510. These prices are listed with destination charges included. The higher trim levels mostly creep up as well, with the exception of the Legacy 3.6R Limited and Outback 3.6R Limited, which have both dropped in price slightly. The full list of price changes can be seen in the table below. Although prices have gone up, Subaru compensates a bit by now including EyeSight on every single version of the Legacy and Outback, including the base trims. EyeSight includes a suite of driver safety aids such as automatic forward emergency braking, adaptive cruise control, lane-departure warning and lane-keeping assist. On the previous 2018 model Legacy, EyeSight was not available on the standard model, and was an option on all other trims. On the 2018 Outback, EyeSight was only standard on the 2.5i Touring and 3.6R Touring, and was an option for Premium, Limited and 3.6R Limited. It wasn't available at all on the base 2.5i. The 2019 Legacy 2.5i Sport also picks up blind-spot warning and rear cross-traffic alert as standard features. Both the Legacy and Outback see a few little interior tweaks, too. All models now get an instrument panel that includes a 5-inch LCD display. The 2.5i trim gets extra lighting and a pair of front USB ports, and Premium and Limited trims get a standard auto-dimming mirror with compass and Homelink garage door opening button. These 2019 Legacy and Outback vehicles will be arriving on dealer lots over the summer, so they should be there soon if not already. Subaru Legacy 2018 2019 2.5i $23,055 $23,430 2.5i Premium $25,155 $25,580 2.5i Sport $27,205 $27,680 2.5i Limited $29,955 $30,130 3.6R Limited $32,805 $32,430 Subaru Outback 2.5i $26,810 $27,320 2.5i Premium $28,910 $29,420 2.5i Limited $33,610 $33,820 2.5i Touring $37,405 $37,770 3.6R Limited $36,310 $35,970 3.6R Touring $39,605 $39,970 Related Video:

You can almost make out the shape of the new Subaru Crosstrek

Subaru released a shadowy teaser of the redesigned XV hatchback which will debut in March at the Geneva Motor Show. The car will be called the Crosstrek in the United States. We can't see much from this dark image, but it looks like the sides have more creases and definition than the current model, which has been on sale since 2013 with only minor changes. Subaru showed the XV concept at Geneva last year with wild wheels, sharp headlights, severe side cuts, and prominent off-road-style body cladding. Naturally, we expect a more toned-down version in production trim. Subaru confirmed the new vehicle will offer its Symmetrical All-Wheel-Drive system (we'd be stunned if it didn't). The Crosstrek will also employ Subaru's new Global Platform, which is more rigid and has a lower center of gravity. These modular underpinnings will be used on all of its next-generation models and debuted on the Impreza. The Crosstreck was called the Crosstrek XV in the US market for several years and also offered a hybrid version, which was dropped. Crosstrek sales in the US increased 7.6 percent last year to 95,677 units, placing it third behind the Outback and Forester in Subaru's portfolio. Related Video: