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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.

2020 Subaru Legacy XT Drivers' Notes | It's what's inside that counts

The 2020 Subaru Legacy is completely new in all of the places that can’t be seen. Subaru transitioned the redesigned sedan onto its Subaru Global Platform and gave it an entirely new interior, but the drab sheetmetal hardly looks changed from the previous generation. ThereÂ’s a new 2.4-liter turbocharged flat-four thrashing away under the hood, replacing the flat-six as the upgrade engine for the Legacy. The boosted XT version of the sedan is the one that we spent a week driving. In this configuration, the Legacy offers 260 horsepower and 277 pound-feet of torque, routing it through a continuously variable transmission. Subaru claims the trip to 60 mph takes just 6.1 seconds. Of course, all-wheel drive is standard. This feature would have made the Legacy unique in this segment a short time ago, but the Nissan Altima is now available with all-wheel drive, and the Camry will soon be offered with it as well. Our Touring XT was the most expensive Legacy that money can buy at $36,795. Being the highest trim, it presents well inside with tan and black high quality leather all over the place. Subaru is finally starting to put together some great interiors, and it shows. A whole list of luxury and tech features sweeten the deal even more for the Legacy. Additions like the 11.6-inch infotainment system, driver-monitoring system, power sunroof, front view monitor, satin finish mirrors, heated everything and much more all add up to make a surprisingly luxurious Subaru sedan. Senior Editor, Green, John Beltz Snyder: I got to take this home while there was still a lot of snow packed on neighborhood roads, and boy was that a treat. Like the Outback, this Legacy feels great on soft or slippery roads. ItÂ’s fantastically easy to get this to start drifting oh so gently, and then to maintain and control that slide with zero fear of it getting too hairy. Repeatable, manageable, fun. ItÂ’s officially Subaru season. On the cleared (but often pock-marked) roads, the Legacy is a comfortable cruiser without being too soft. It provides a good feel of the road, but is never anywhere close to punishing. Combined with all-wheel drive and slightly artificial-feeling but otherwise precise, easy and confidence-inspiring steering, this is pleasant — and sometimes even fun — to drive regardless of the road conditions. Assistant Editor, Zac Palmer: Subaru stepped up its tech game in the 2020 Legacy with a massive 11.6-inch touchscreen.

Factory Five's Subaru WRX-based 818 kit now on sale [w/video]

The Subaru WRX has always needed a dash more style, and the do-it-yourself carmakers at Factory Five are looking to accomplish a lot more than that with their new mid-engine, rear-wheel drive 818. The sports car started with a contest in 2011 to create the shape for the company's next vehicle, while sticking within certain limits. A designer named Nouphone Bansasi had his entry chosen, and first cars were completed last year.
The 818 is named after its target weight of 818 kilograms (1,803 pounds), and it's offered in two forms. The S starts at $9,990 and is meant for street use, with two seats and a basic interior. The R model for $10,990 is more track-focused and features a tiny windshield and full roll cage. The company claims that complete cars can be built for around $15,000, after factoring in the donor Subaru. Performance is very brisk, with acceleration to 60 miles per hour in under four seconds, according to Motor Authority.
The kits are meant to be something that even a relative novice could put together. All the builder needs to provide is a 2002-2007 Impreza or WRX. The car donates its turbocharged boxer four-cylinder engine, transmission, axles, brakes, steering and other major components. Factory Five supplies the spaceframe, body, suspension, lights, windshield and some interior trim. It doesn't even need paint, thanks to its gel-coated fiberglass body panels. The company also offers a laundry list of options, including carbon fiber aero components, upgraded suspension parts, improved brakes and more. Kits can be ordered in either left- or right-hand drive.