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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.

New BBC Top Gear season is off to a great start

The past few years have been very demanding for Top Gear fans. The Jeremy Clarkson Top Gear got too big for itself, and the core quality of the series degraded as stunts and jokes gradually became more and more stale. Things came to a head with the Fracasgate, with Clarkson punching a producer in a very nice hotel in Yorkshire with a very nice brass plaque commemorating "The End of Clarkson's BBC Career". Fast forward to a year ago, when the BBC produced a new series of Top Gear, with famed breakfast show person and shouting enthusiast Chris Evans hosting. Laden with personnel and curiously lacking any direction, the first new season collapsed onto itself with Evans eventually quitting the entire shindig. After that, viewers received a new, Amazon-produced Clarkson-Hammond-May series called The Grand Tour, which was often brilliant and just as often hampered by writing as hackneyed as the last Clarkson years of Top Gear. Now the slate is clean. Evans is gone. The first Grand Tour season has aired. The BBC has had a good long time to re-evaluate its strategy. And the first episode of this season's Top Gear has aired in the UK - and will air March 12 on BBC America. Your first extended look at all new #TopGear, coming 5 March. See you there pic.twitter.com/lYoYOtrWxR — Top Gear (@BBC_TopGear) February 23, 2017 What an improvement! It seems like the producers have taken an ax to everything not strictly necessary for making a great car show, and they've left what is absolutely crucial. There are the three car guys, Matt LeBlanc, Chris Harris and Rory Reid. There is a new studio. There is a new track car. There is a celebrity, but it's not painful to watch. There are easy jokes, there are car jokes, there are Ronin jokes. Ronin jokes! It's as if Harris, by dissecting continuity errors in the 1998 film's BMW chase, is reaching out to us fans, saying he's one of us, and he did notice the wrong wheels when the black BMW falls from the bridge. (Other mistakes are wrong-colored tach needles, for instance.) The first car film is a quality Ferrari FXX K piece, with Harris enjoying one of the 40 built track-day specials on the bankings of Daytona. It's remarkable it was Harris who was allowed to drive the exclusive Ferrari, as the first "outsider" (in his words) to drive one; years ago Harris was one of the most vocal critics of Ferrari's practices, resulting in him getting banned from driving press Ferraris. But then again, this is a customer car.

Trump declaration they're a security threat stuns Japanese automakers

TOKYO — Japan's automakers' lobby said on Tuesday it was dismayed by President Donald Trump's declaration that some imported vehicles and parts posed a threat to U.S. national security, as the industry braces for a possible rise in U.S. tariffs. Trump made the unprecedented designation of foreign vehicles on Friday but delayed for up to six months a decision on whether to impose tariffs to allow for more time for trade talks with Japan and the European Union. "We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed," said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association. "As chairman, I am deeply saddened by this decision," Toyoda, president of Toyota, said in a statement. Trump has threatened to impose tariffs of up to 25% on imported cars made by foreign automakers, a move which automakers have argued would ramp up car prices, curb the global competitiveness of U.S.-made vehicles and limit investment in the country, the world's No. 2 auto market. The United States is a vital market for Toyota, Nissan, Honda and other Japanese car makers. Autos and components are among the Asian country's biggest export products. Most of Japan's major automakers operate plants in the United States. The Japan Automobile Manufacturers Association notes that its automakers build about 4 million vehicles a year in North America, or 75 percent of what it sells here. Many are built for export, helping lessen the U.S. trade deficit Trump is concerned about. Major automakers have announced a slew of investments in the United States since Trump took office in January 2017 and put pressure on the industry to create more U.S. jobs. For its part, Toyota has pledged to invest almost $13 billion in the United States between 2017 and 2021 to boost manufacturing capacity and jobs. This includes $1.6 billion for a vehicle assembly plant in Alabama jointly run with Mazda. Government/Legal Honda Mazda Mitsubishi Nissan Toyota Trump