Toyota to Supply Subaru With New Sub-Compact Model

Colum Wood
by Colum Wood

Along with a long-rumored hybrid technology partnership between Toyota and Subaru, Japan’s largest automaker is also preparing to supply Subaru with a new sub-compact model. Japan’s Nikkei is reporting that the new model will be based on the Toyota Ractis, but will be built entirely by Toyota.

The deal seems to be part of a continued partnership between the two automakers, with long-standing rumors of a shared sports car, referred to as the FT-86 or FR-S. Of note, Toyota supplies the Scion xB to Subaru, where it is sold in Japan as the Dex. Toyota also owns a 16.5 percent stake in Subaru parent company Fuji Heavy Industries.

Initially Toyota will supply roughly 10,000 models to Subaru each year, using the current Toyota powerplants, including either a 1.3-liter or 1.5-liter 4-cylinder. The move by Subaru is seen as a reaction to increasing trends towards small vehicles. It’s also likely a way for Subaru to meet increasingly strict fuel economy standards.

There are no plans for Subaru to offer this model in North America, although we have to think that eventually Subaru, like all other automakers, will have to offer sub-compacts globally in the near future.

[Source: Nikkei via Green Car Congress]

Colum Wood
Colum Wood

With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.

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