Since announcing October 5 that it would take over GM's stake in Fuji Heavy Industries, Subaru's parent company, Toyota has moved quickly to close the deal, buying up 8.7 percent of Fuji Heavy for about $315 million. Then the automaker announced a joint R&D effort to explore applications of Fuji Heavy's advanced Lithium-ion battery technology.
Now Edmunds says that the Japanese media is reporting Toyota may be planning to use the excess capacity of Subaru's Indiana plant to build the Scion in the U.S., instead of adding a Scion production line to one of its Canadian plants. Meanwhile, Subaru is rumored to be looking at selling a Toyota-built small car in Europe. Could accelerated development of Subaru's turbo-parallel hybrid technology be far behind?

Toyota is reported to be planning to build 100,000 cars a year at the Subaru Indiana plant.

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