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360 views August 17, 2006

Toyota to supply Subaru with cars for Europe

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Japan's Yomiuri newspaper has reported that Toyota will supply Subaru with a range of its small cars to be sold in Europe. The partnership could begin as early as 2008 and will include small-car hits such as the Yaris and Aygo. Subaru’s reasons for this deal are increased demand for fuel efficient vehicles and to take advantage of Toyota’s small-car expertise.

This is the first OEM (original equipment manufacturer) deal that Toyota has entered, and we have a feeling it won’t be the last. Though no plans were announced, we expect Subaru to outsource production of small cars for other regions. It’s almost certain that the rebadged cars won’t include Subaru’s signature all-wheel drive technology, but at this price range buyers probably won’t care.

[Source: Reuters]