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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 issues recall over cars that may start themselves

Subaru has issued one of the strangest recalls we've come across in some time. As it turns out, certain Subaru models may randomly start their own engines. The issue is confined to select models equipped with an automatic or CVT and the company's optional Audiovox remote engine starter (RES) accessory. If the RES key fob is dropped, it could "randomly transmit an engine start request without pressing the button."
Vehicles affected include the 2010-2012 Legacy and Outback with an automatic or CVT, 2012-2013 Impreza with the CVT, and 2013 XV Crosstrek with CVT (shown), all equipped with the Audiovox RES accessory. Likewise, certain 2013 Legacy and Outbacks may have received replacement RES fobs that could be affected. All told, 47,419 vehicles are included in the recall.
Should one of these cars start on their own, Subaru says they will run up to 15 minutes, but the vehicle may also continue to start and stop until either the battery in the fob dies or the car runs out of fuel. Of course, if one of these cars is parked in an enclosed area, that means harmful gasses could build up, which could be dangerous if inhaled.

Refreshed Toyota 86/Subaru BRZ spied running around the Nurburgring

The Toyota 86 and Subaru BRZ are officially confirmed for a second generation, but it looks like this current car will not go softly into the night. One of our spy photographers just caught a camo’d up BRZ/86 pounding around the Nurburgring with a few changes in store. This tester only has camouflage on the front and rear of the car, indicating a light refresh is the extent of the styling changes. In examining the car as a whole, itÂ’s a rather conflicting tester. Both the grille and headlights tell us itÂ’s an 86, but the badge on the rear clearly says “BRZ.”  The Toyota 86 has a different grille than the BRZ, and we can see that style grille flanked by some massaged vents on both sides. Toyota uses a different style of headlight for the 86, and these look similar to those used in the current car. New front-design features are covered up by the camouflage, but the sheet metal doesnÂ’t appear to be changing. Another area of potential change is at the rear of the car. More camouflage on the trunk lid covers the obvious BRZ badge and the taillights. We donÂ’t see much in the way of differences between the taillights on this model and the current BRZ/86 twins, but the manufacturer obviously wants to keep something secret back there. What weÂ’re most excited about is seeing the extra vent behind the front wheels. Current BRZ and 86 trims donÂ’t feature such intense cooling additions. Above it sits what appears to be a badge or protrusion of some sort. The window-level badging is still visible under the wrapping, but the tire-level badge is a new one — itÂ’s similar to the design we see on the WRX and WRX STI.  All things considered, this one is a little confusing. Subaru could be adopting a more Toyota 86-esque design, but we suspect a special edition is in the works. Hopefully it involves more than just design tweaks, and gives this model a hearty send-off before the new generation arrives.