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Toyota and Fuji Heavy go for deeper integration
Toyota is quickly beginning to leverage the majority block of shares it holds in Subaru parent company, Fuji Heavy
Industries. A Japanese newspaper is reporting that a Fuji
Heavy production plant in Indiana will be tapped to produce 100,000 Toyota vehicles beginning in 2007. Toyota's pres
Katsuaki Watanabe and Fuji Heavy pres Kyoji Takenaka will meet in early December for the first time to iron out the
arrangement.
The relationship between these two companies, however, is a two-way street. Toyota, for its part, will be
supplying Fuji Heavy with hybrid
systems and help train the acquired company's engineers in the art of hybrid technology. Toyota may even absorb a few
Fuji Heavy engineers in its hybrid program, perhaps to further develop Subaru's
turbo parallel hybrid system that marries a thin 10-kW
electric motor with the company's 2.0L turbo-four.
Maybe we weren't paying attention before but for all the time that GM owned its stake in Fuji Heavy had we ever seen
this level of cooperation and sharing between the two companies? Of course, the last thing GM would need right now is
more production capacity, but a turbo-hybrid would've been a useful component.
[via Motor Trend and
Green Car Congress]
Reader Comments (Page 1 of 1)
Knuckle-Dragging Patriot 11:07PM (12/18/2005)
I blame the unions.
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whatinthehell? 11:07PM (12/18/2005)
GM never did know what to do with Subaru when it had control of Fuji heavy. I think their initial goal was to breach the very tough Japanese automobile market but that didn't work out.
I'm sure GM had other plans but didn't have the same resources as Toyota to do anything about it. Cutting them off was a smart decision since it's saving the company lots o' money and the fact that the partnership would've continued to go nowhere.
At least GM has it's own AWD vehicles and turbocharged engines thanks to its European subsidiaries. All they need to do now is start using them in the US. Can anyone say AWD Cobalt?
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Koba 11:07PM (12/18/2005)
Just another symptom of how far GM has it's head up it's ass, and how shallow Toyota has it's head up it's ass.
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Joel A 11:07PM (12/18/2005)
It will be interesting to see what's 'birthed' from the new alliance. As for GM and Subaru, what's done is done. We had the Saabaru....
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Jeffrey 11:07PM (12/18/2005)
How does Toyota's 8.7% share of Fuji Heavy stock constitute a "majority block" of shares, as stated in the opening sentence?
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Jeffrey 11:07PM (12/18/2005)
Also appearing in Japan's Kyodo News was a report that Toyota will build minicars for Subaru in Europe. Not sure if that means Toyota will assemble Subaru's R1 & R2 minis or if they'll be Toyotas rebadged as Subarus. Subaru's minis have won awards in Japan - it'd be a shame to not continue those models.
Reply