Toyota and Subaru agree on new capital alliance – next-gen 86 and BRZ confirmed; technology sharing

Toyota and Subaru are further strengthening their long-term partnership by announcing a new capital alliance, which will see the acquisition of shares by both carmakers as well as the introduction of new products.

The latter is especially interesting, as the deal will see the joint development of the next-generation 86 and BRZ, which confirms what has been heavily rumoured over the past few months. A new sports car is always welcomed in the current automotive climate, but official details about the new Toyobaru remain unknown for now.

The current 86 and BRZ have been in production since 2012, and were given a few updates over the years. Built on a heavily modified Impreza platform, the rear-wheel drive sports cars are powered by a 2.0 litre naturally-aspirated flat-four petrol engine mated to either a six-speed manual or automatic transmission.

Besides a new sports car, the companies will also work together to develop new all-wheel-drive models “that offer the ultimate sensation in all-wheel driving,” although just what they are remains a mystery; both companies have their respective AWD technologies.

The deal will also help the carmakers respond to the new domains of CASE (car connectivity, autonomous or assisted driving, new mobility or car-sharing, and electrified powertrains and components), with the expanded use of the Toyota Hybrid System in other Subaru models (beyond the Crosstrek Hybrid) and wider cooperation on connected vehicles and autonomous driving.

As for the financial aspects of the deal, Toyota will increase its equity stake in Subaru from 16.83% to 20%, while Subaru will acquire shares equivalent to up to 80 billion yen to take a stake of less than 1% in Toyota.

Toyota and Subaru began their partnership as far back as 2005, which included contract production of Toyota vehicles by Subaru and supply of vehicles to Subaru by Toyota, as well as joint development of the 86 and BRZ. Recently, both carmakers agreed to develop a platform dedicated to battery electric vehicles (BEVs), combining Subaru’s AWD and Toyota’s vehicle electrification technologies.

“During this once-in-a-century period of profound transformation, even if CASE changes how cars will be, driving enjoyment will remain an inherent part of automobiles and is something that I think we must continue to strongly preserve. I, myself, am a rallyist, and, through my experience of training hard in an Impreza, I have felt in my veins the wonders of Subaru’s AWD technologies,” said Akio Toyoda, president of Toyota.

“Between our company and Toyota is an alliance that already has a history of 14 years. During this time, we have deepened our bonds in various fields such as product development, production, and sales, including through personnel exchanges. By taking our relationship one step further and mutually honing our technologies, we will strengthen our ability to respond to CASE and other demands, and will accelerate our shared aspirations for making ever-better cars,” commented Tomomi Nakamura, president of Subaru.

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