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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.

Caddy XT4, Subaru STI Type RA, and blazin' Elon | Autoblog Podcast #553

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor Alex Kierstein and Green Editor John Snyder. We talk about time spent with the Cadillac XT4 and Subaru WRX STI Type RA. Then we get into other topics, including the death of the VW Beetle, our thoughts on the state of the Nissan 370Z, cameras replacing mirrors, the trouble with the Ford Focus Active, and Elon Musk blazing a fat blunt. We indulge in a little conversation about the process of writing about cars. Finally we help a listener choose their next EV in the "Spend My Money" segment.Autoblog Podcast #553 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we've driven: Cadillac XT4 and Subaru WRX STI Type RA RIP, VW Bug What's up with the Nissan 370Z? Lexus to replace side mirrors with cameras RIP, Ford Focus Active You do you, Elon On writing about cars Spend My Money: electric edition Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Green Podcasts Cadillac Ford Lexus Nissan Subaru Tesla Volkswagen Car Buying Technology Coupe Crossover Electric Police/Emergency Sedan cadillac xt4 subaru wrx sti type ra

2019 Subaru WRX STI S209 First Drive Review | The exotic Subie

It’s not often that you drive a Subaru thatÂ’s rarer than most Ferraris or Lamborghinis. And in its own modest way, the 2019 Subaru STI S209 is as special as such limited-edition offerings from highfalutinÂ’ brands. The S209 is SubaruÂ’s rally-wrapped gift to America, the first S-Line model from the brandÂ’s vaunted STI performance division to be exported to the United States. Only 209 copies are being built, all bound for the U.S. beginning in November, and itÂ’s a dandy: The fastest, sharpest-handling, most sophisticated WRX ever to grace our shores. It's what we get for making the current WRX the best-selling version ever, with sales increasing every year since its 2015 debut. Good job, America. DonÂ’t confuse this car with a typical “STI”-branded Impreza WRX, which are all produced alongside other Subarus in Gunma, Japan. This “STI” refers to the scrappy, stand-alone performance unit called Subaru Tecnica International, now with barely 120 employees, thatÂ’s been responsible for beloved Japanese-market “S-cars” such as the S202 through S208. It owns a combined five manufacturerÂ’s and driverÂ’s titles in the World Rally Championship, and more recently, multiple class wins at the 24 Hours Nurburgring. STIÂ’s small shop in Kiryu, Japan, is building just two or three S209Â’s per day, and their handiwork – right down to hand-polished exhaust tips – is memorialized with a pair of serialized production plaques: one in the cabin and one atop the 341-horsepower, 2.5-liter boxer four engine. Subaru considered using its 2.0-liter turbo, but went with a modified version of the 2.5-liter EJ25 used in the WRX STI Type RA, because the larger-displacement motor meant less turbo lag. There's no typical plastic cover, so the gloriously exposed engine flaunts a redesigned intake with a conical air filter and enlarged ducts. An enlarged turbocharger is designed to STI specs by the respected aftermarket company HKS, which lifts the Type RAÂ’s boost from 16.2 to 18.9 psi. A catback exhaust system further reduces back pressure by 17 percent relative the Type RA, and 50 percent versus a basic STI. The S209's resulting 341 horses and 330 pound-feet of torque compares with 310 hp and 290 pound-feet in the 2019 WRX STI. Subaru had to quash its ambitious plans for forged pistons and connecting rods, due to potential durability concerns that the company now suspects was a non-issue.