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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.

Toyota Auris gets new Touring Sports variant

Toyota showed off the Touring Sports version of the Auris next to the newly introduced Auris Hybrid at last year's Paris Motor Show, but didn't say much about it. Six months later, just ahead of the Geneva Motor Show, the company is crowing about that wagon going on sale with the Hybrid Synergy Drive, creating the Auris Touring Sports Hybrid.
The hauling version of the exceptionally popular Auris hatchback doesn't just add a hybrid wagon to the compact segment, Toyota says it offers class-leading load capacity of 1,658 liters with the Easy-Flat one-touch rear seats down. With the rear seats up, it offers 530 liters. The little big gulp is possible because the hybrid batteries have been placed under the rear seats instead of being in the luggage area.
It looks the same as the hatchback save for the fact that it's 285 millimeters (11.2 inches) longer behind the C pillar, has a redesigned tailgate and a lower load floor. Engines beyond the hybrid will match the rest of the lineup: 1.3-liter and 1.6-liter gasoline engines and a 1.4-liter D-4D diesel. There's a chance we'll see it in Geneva, if we don't there's a press release below to tell you all about it.

The tumultuous history of the diesel engine

Volkswagen, diesel's most enthusiastic patron, deceived everyone about the amount of emissions its cars were putting out. We have covered this latest massive automotive scandal in great detail, and there are surely more fascinating revelations to come. It turns out that this is just the latest episode in the epic story of the controversy and intrigue surrounding the diesel engine, and its inventor. This is the story of the tumultuous birth and interesting evolution of the compression-ignition engine at the center of the VW scandal. Napoleon III Got Rudolf Diesel Deported Rudolf Diesel was born in Paris in 1858. His Bavarian parents had settled in France where his father, Theodor, was a leather goods manufacturer. When the French Parliament declared war on Prussia, kicking off the Franco-Prussian war, the Diesels fled to London. When he was 12, Rudolf went to live with his aunt and uncle in the Bavarian university town of Augsburg. It was his parents' hometown, and importantly, it's where Rudolf began studying at the Royal County Trade School. His time in Augsburg, graduating at the top of his class from trade school that laid the groundwork for all that was to come. Diesel Nearly Blew Himself Up An early career in refrigeration saw Diesel running R&D in Berlin for Linde, a company started by refrigeration pioneer Carl Von Linde, one of Diesel's professors. His ambition to branch out beyond refrigeration, and his deep understanding of thermodynamics, led to efficiency experiments with steam engines. Diesel was trying to create an engine that didn't waste heat from the combustion process, therefore getting the most work out of the fuel. Instead, he was nearly killed when an experimental ammonia vapor steam engine exploded. Recovery took many months, and during some of that time, he was no doubt planning his next experimental engine, based on the theoretical Carnot cycle. His Engine Was An Attempt To Stick It To The Man Steam engines were expensive to run and wasteful. Diesel thought the efficiency of his design would be a way for the small business to compete with the dominant industrial giants. It was, and it did, but big business is equally passionate about chasing efficiency. Diesel engines quickly proliferated in industries both grand and cottage. Rudolf Didn't Really Invent The Diesel As We Know It Instead, he improved an existing one to a significant degree. The Diesel engine could be considered an evolution of the "hot-bulb" engine.