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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 SEMA concepts promote active lifestyles, rallying [w/video]

Toyota has six vehicles that it's bringing to the Specialty
Equipment Market Association (SEMA) show next week, all of which were developed by and for people who live active lifstyles. Four of them are the result of the Toyota Dream Build Challenge, which tasked a team of athletes and vehicle customization shops to build Toyota sedans, pickup trucks and sport utility vehicles in seven weeks that would enhance performance in their respective sports.
We'll lead off with the CamRally Camry, developed by NASCAR driver Parker Kligerman, Kyle Busch Motorsports and Mooresville, NC shop Detroit Speed, Inc. for the Dream Build Challenge, because it appeals to us gearheads (sure, call us one-sided). It was totally transformed into a rally vehicle, and it has to be the most badass Camry we can remember seeing. The sedan is always a bit flaccid-looking in stock form, but the CamRally's wide body and other exterior upgrades and the turbocharger make us forget about that, as do its stripped, painted interior and Sparco race seat.

Toyota has 200 orders for 2016 Mirai hydrogen fuel cell car

Toyota built 500 Lexus LFA supercars between 2010 and 2012 in what Automotive News has called a "secretive workshop." The automaker has been wondering what to do with that production line since the last LFA rolled off in December 2012 and, like so much else for Toyota these days, the answer is a hydrogen car – and in about the same small numbers. The 200 Mirai orders are "mostly from government and corporate fleets." – Masamoto Maekawa The 2016 Mirai fuel cell vehicle will go into production later this month at the old LFA workshop, which is located behind Toyota's Motomachi assembly plant in Toyota City. The skilled workers there have been doing other things (like building bicycles) since the last LFA was finished and now Automotive News says they will hand-build the Mirai so that the car can get the attention to detail Toyota wants and because there won't be that many of the hydrogen cars made for a while. Toyota has already said it will sell only 3,000 Mirai FCVs in the US by the end of 2017 (it won't arrive here until late 2015, with deliveries in Japan starting earlier). With 200 orders already in and a plan to build only 700 in 2015, Toyota is already talking about delivery delays. Toyota's executive vice president for domestic sales, Masamoto Maekawa, said that, "the 200 orders are mostly from government and corporate fleets." Production could remain at LFA Works for a while. One Toyota exec said that even if the company makes 2,000 Mirais a year, that would still be only 10 each day. Doesn't sound like there's going to be anyone working weekends for a while.