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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.

2018 Subaru WRX Drivers' Notes | Turbo traditionalist

Editor-in-Chief Greg Migliore: The Subaru Impreza WRX is one of my favorite enthusiast sedans. It's invigorating, just a bit raw and makes you want to drive it more and more. Our tester has subtle blue paint and aggressive black wheels, which strike the right tone. It's sporty without being stupid. Inside is black leather, red stitching, and plastics that are decent, or at least non-offensive. Good looking car, overall. I was excited for my one-night stint in the WRX. I blitzed home, dashing in and out of traffic in the lower gears. This thing is like a hovercraft, and with the windows down and the engine growling and buzzing, I made record time. The steering is tight, the clutch engagement is heavy, and the brakes have just the right amount of pedal depth. I felt focused and in control. I've always felt the WRX is the right Impreza for me. The STI is awesome, but unusable for many everyday driving experiences. I could live with the WRX longterm, and love it. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Associate Editor Joel Stocksdale: If you've ever lamented that turbo cars don't feel like turbo cars anymore, you should check out a WRX. Its 2.0-liter turbocharged flat-four definitely takes a page from the peaky boosted beasts of the past. Driven at low rpms and gently enough that boost still builds, the turbo is laggy and takes a while to hit peak boost. This means that in mild driving, you'll be just shy of the speed limit when the turbo whacks you in the back, and you'll have to jump back off the accelerator just a moment later. But the rush of the turbo kicking in is still pretty entertaining, and a unique feeling that has been engineered out of a lot of other turbo cars. If you drive the WRX hard, though, the turbo engine becomes much easier to work with. The lag disappears, and the turbo spools right up. But you do have to be running the boxer right up close to redline to keep it responsive. These characteristics aren't something I personally enjoy. But the way the rest of the WRX drives is spot on for me. The steering is weighted nicely, and the car is very responsive. It also feels quite neutral, much more so than even good front-drive and front-biased all-wheel-drive cars. There's a bit of lean, but the chassis is always composed and communicative. And the benefit of the slightly roll-y suspension is that the WRX has impressive ride quality.

Prodrive builds new Isle of Man Subaru for record attempt

Prodrive have released photos of their new weapon for the Isle of Man TT Course. The three-time British Rally Champion Mark Higgins has set a number of records driving a Subaru on the famed Manx course throughout the years, and this time Subaru Technica International and Higgins are teaming up with Prodrive. Prodrive are famous for building Subaru's rally cars in the past, from 1990 to 2008, so the joining of forces gives the Isle of Man TT car an extra helping of motorsport magic. These days, Prodrive is also known for rally-prepared Minis and for building Aston Martin racing cars. They've had their share in giving UK-specification customer cars more power as well, along with creating a one-off, Subaru-based P2 sportscar to showcase their engineering skills and close ties with the Japanese manufacturer. This year's motorcycle event takes place on the treacherous 37-mile circuit in the end of May and early June. Past years' record drives have been especially memorable, and Higgins has been at it since 2011, first dipping under 20 minutes with a 19-minute, 56.7-second run five years ago – besting Tony Pond's 1990 laptime by over two minutes. The latest time for Higgins is 19 minutes and 15 seconds, so it will be interesting to see if the new car does it in less than 19 minutes. Related Video: Featured Gallery Subaru Prodrive Isle of Man Motorsports Subaru Racing Vehicles isle of man tt mark higgins road racing