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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.

2017 Subaru Impreza starts at $19,215 and comes with a five-speed manual

Subaru released pricing for the all-new 2017 Impreza sedan and hatchback, which were unveiled at this year's New York Auto Show. With the $820 destination and delivery fee, the 2.0i Impreza sedan with a five-speed manual starts at $19,215 (the CVT is an extra $1,000 on both body styles) while the hatchback costs $19,715 – $500 extra regardless of trim. Both the four- and five-door Imprezas represent a price increase of about $100 over the previous model. The range-topping Limited trims, though, are an additional $1,500 from the previous year. The Impreza sedan and hatchback are available in four different trims including 2.0i, 2.0i Premium, 2.0i Sport, and 2.0i Limited. The 2017 Impreza rides on Subaru's new Global Platform, a modular platform that will underpin all of the automaker's future vehicles. Besides the new platform, the new Impreza gets a host of standard features, which include: a 6.5-inch touchscreen, Apple CarPlay, Android Auto, power windows, power door locks, and a tilt and telescoping steering column. Subaru's faithful Symmetrical All-Wheel-Drive system returns, as does the 2.0-liter Boxer engine. The motor, though, produces 152 horsepower, up from 148 horsepower, thanks to direct injection and other unnamed enhancements. With the release of the Impreza's pricing, Subaru also confirmed a five-speed manual transmission will be offered on the base 2.0i models, as well as the 2.0i Sport trims. The 2.0i Premium and top-of-the-line 2.0i Limited models only come with a CVT. The 2.0i Sport trim, which sounds like the most enthusiast-oriented option, adds sportier suspension tuning, Active Torque Vectoring, and 18-inch wheels. The 2.0i Limited trims, while carrying a substantial increase over last year's model, are much more opulent with LED headlights, a leather-trimmed interior with contrast stitching, automatic climate control, and an optional Harman/Kardon audio system. The 2.0i Sedan with the CVT is the most fuel-efficient model with an EPA-estimated 28 miles per gallon in the city and 38 mpg on the highway. Those figures are a one-mile per gallon increase over the previous 2.0i model. Imprezas with a CVT will be available later this year, while vehicles with the five-speed manual transmission will go on sale early next year. Related Video: Featured Gallery 2017 Subaru Impreza Pricing Subaru Car Buying Hatchback Sedan pricing

Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.