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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.

2019 Subaru Forester Touring Long-Term Update | Wet carpet

I hadn’t been doing much driving, so the Forester had spent a good chunk of the rainy/snowy spring week relaxing in my driveway. Finally, it came time to pick up a birthday dinner — Indian food, curbside to-go. As soon as I sat down, I noticed something new: a small crack in the windshield. That fix will have to wait until more businesses reopen. As I eased out of my driveway, another issue emerged. I heard what sounded like water sloshing. Braking for the stop sign at the end of my street Â… yep, definitely liquid. It sounded like it was below or in front of me. Later, I was parked in the alley behind the restaurant waiting for my order, and I accidentally dropped my phone down into the black hole on the righthand side of my seat. I reached down and groped for it, but instead of a rectangular personal computer, my fingers found nothing but carpet, seemingly soaked to capacity. My first instinct was to use a disinfectant wipe on my wet digits, but then I got out to inspect the underside of my seat from the second row. There was my phone, sitting in a fabric swamp under the seat. I retrieved it, and, of course, stuck my hand back in the spongy mess for an inspection. The water was cool to the touch. I sniffed my hand and found no noticeable smell. I wiped my hands dry, got my food situated on the passenger seat (seat warmer set on high, of course) and headed home. That night, I told Road Test Editor and fleet manager Zac Palmer about what I found. The next day, there was still no smell, but the water was still pooled, and the Forester got an appointment at the dealership (Dunning Subaru, where I used to take my '04 WRX — good people). I dropped it off Monday morning, and it spent a full week at the dealership. First, a part had to be ordered (something about a missing grommet; we'd learn more later). Second, the car wasnÂ’t ready until just before closing time on Thursday, and I didnÂ’t have time to pick it up before they closed for the weekend (temporary coronavirus hours) at 3:45 p.m.  “Subaru service told us that it tried to soak up and remove as much of the water as possible,” Zac relayed from Dunning, “but cleaning up the mess isnÂ’t something the service department usually does. Instead, it normally gets sent to a detailing shop that is now closed due to the coronavirus. The dealer apologized over the phone for the incomplete job, and warned us that the carpeting could still feel damp and possibly smell when we pick it up.

2020 Subaru Outback Touring Quick Spin | Balance of power

Driving an Outback in Subaru-crazy Seattle is just about as incognito as one can get. You can further disappear into the Evergreen State background if your Outback is Autumn Green Metallic. And that’s how we blended in for a week in a town where the Outback has been the top-selling vehicle several years, and where Subarus constitute 12% of all vehicles sold (2.5 times the brandÂ’s market share nationwide). A few cars are outselling the Outback so far this year — but that's OK, because one of them is the Subaru Forester. Our disguise for a week was a 2020 Outback Touring, the top trim level, which starts at $38,355 including destination fee. For that sum, which is nearly $12,000 more than a base Outback, you get a quite-nice interior done up in warm Java Brown Nappa Leather, with sunroof, 18-inch black aluminum alloy wheels, satin-chrome side mirrors, body-color door handles, heated steering wheel, and driver-distraction mitigation system. ItÂ’s a handsome package, especially the 11.6-inch Starlink touchscreen built into a monolithic, smooth black glass center stack, though the HVAC controls in particular are a curious mix of analog and digital. And it all rides on a new, stiffer platform — making the Outback inwardly new from the ground up, even though it was outwardly designed to look pretty much like it always has. ItÂ’s a conservative, donÂ’t-mess-with-success design approach that Subaru also used on the new Forester. What you donÂ’t get, at least not on this Outback tester nor the one we drove a few months ago in our first-drive review, is a whole lot of power. Both cars were equipped with SubaruÂ’s base 2.5-liter boxer four-cylinder engine that doesnÂ’t reach its peak 182 horsepower until 5,800 rpm, with peak torque of 176 pound-feet at 4,400 rpm. Curb weight on the Touring is 3,772 pounds. Horsepower is up by a mere seven over last year, torque by two pound-feet. Here in Subaru city, IÂ’ve known Outback owners who praise their car's virtues but almost apologetically slip in a qualifier: A little more power wouldÂ’ve been nice. Subaru has a solution for that — the optional XT engine, a 2.4-liter turbocharged engine putting out a thatÂ’s-more-like-it 260 horsepower and 277 lb-ft of torque. The turbo four takes the place of the 3.6-liter flat-six that was offered through 2019. But the MSRPs for the XT trims are a big step up – $4,300 to go from Limited to Limited XT, $2,350 from Touring to Touring XT – to a total ranging from $35,905 to $40,705.