A Japanese newspaper report has confirmed that Toyota will begin producing small cars for Fuji Heavy Industries, the owners of the Subaru brand name. Production of the Subaru version of the Passo hatchback will begin as early as this year, with Toyota subsidiary Diahatsu building the car in its factory in Western Japan. The car is also known as the Boon in Japan, or the Sirion in Europe.

Subaru’s version will be slightly modified from the other variations, and deal is expected to be for between 5,000-10,000 units per year. Toyota recently bought a stake in Fuji Heavy Industries and it’s likely the two Japanese carmakers will work together in the future to share technology and models.

Subaru needed Toyota’s help with the small car due to tight emissions restrictions that would have made it too costly to develop the model on its own. Fuji Heavy will be collaborating with Toyota to produce Camry’s at its Indiana Plant later this year.