Thinking Big: new law opens path for Toyota takeover of Subaru
Toyota has been eying a takeover of Fuji Heavy Industries – Subaru's parent company – for some time now. When General Motors ditched its 20 percent stake in Fuji back in October 2005, Toyota snapped up 8.7 percent and the two have been undertaking a series of joint ventures since.
But that wasn't nearly enough for the Toyota Motor giant that's getting closer and closer to the #1 global automaker spot with each passing day. An acquisition of Subaru would bring them even closer, if only they could.
Continues after the jump.
[Source: Automotive News - sub. req.]
The one obstacle standing in Toyota's way until now has been a Japanese law that prohibits any single company from controlling more than half of the domestic market for any particular product – automobiles, in this case. Between the two of them, Toyota and Subaru commanded a hefty 45.6 percent of the Japanese car market in 2006, and that's mighty close to the limit. However, new Japanese anti-trust laws taking effect in April will refocus the criteria on the company's global market share instead of domestic, in a bid to help Japanese companies compete in export markets.
We'd expect Toyota and Fuji to take advantage of this move by the Japanese government. Corporate maneuvering aside, the potential for Subaru's influence on Toyota products has us daydreaming of serious STi-ness trickling down through the entire Toyota line-up.


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Reader Comments (Page 1 of 3)
Jenallay Bazkials 9:05AM (2/07/2007)
Perfect match. Hopefully it happens.
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Ryan 4:48PM (2/06/2007)
Just GREAT!!!!!!!!!!
Why doesn't Toyota just takeover...
Ford
Mercury
Lincoln
Chevrolet
GMC
Buick
Kia
Honda
Hyundai
Saturn
BMW
Volvo
And All The Rest As Well Lets just have Toyota.
Lets just let the Foreigners have it all!!!!!!!
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EnviroBob 4:49PM (2/06/2007)
Odds are it wouldn't be Subaru influencing Toyota, but rather Toyota turning Subaru into a more mainstream brand in an effort to increase sales.
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Jason 5:07PM (2/06/2007)
Subaru would be the loser. We might get all wheel drive Corollas re-badged as WRX's. Lame.
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paul34 5:06PM (2/06/2007)
oh man oh man
Toyota STi?!?!
that could be an awesome, or bad thing
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CDNRower 5:20PM (2/06/2007)
I've been dreaming of a Subaru Outback/Tribeca Hybrid.. It's getting closer.. Maybe we'll even see a plug-in version for Subaru!
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Tim UF 5:11PM (2/06/2007)
I just hope Subaru is able to keep its brand identity (except for the grilles on the tribeca and the 2006/7 imprezas). I do think toyota could learn a thing or two about AWD cars and chassis dynamics from subie; while subie could use a boost in hybrid tech from toyota. but as far as USDM crossover potential between the brands, i hope there isnt much. and please, NO LEXUS BADGED SUBARUS. Gm tried it with the SAABaru 9-2wrX... it didnt work so well.
Let subaru keep on truckin, build an awd justy, and maybe loan the 2.5L turbo powerplant for use in the next sporty toyota.
And how about a hybrid impreza??
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Mike 5:12PM (2/06/2007)
I agree with EnviroBob. We won't see any STi badged Toyotas...more likely the Impreza will be come a dull ass FWD joke like the Corolla or Solara.
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Gardiner Westbound 5:14PM (2/06/2007)
I agree with No.2.
Companies that swallow other companies usually aren't much interested in what the smaller company has to offer.
The first objective is to get their money back ASAP. That means middle management people like designers, engineers and marketing staff are dog food.
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Jason 5:20PM (2/06/2007)
I just don't see the point of this for Toyota. What's the gain?
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British_Rover 5:27PM (2/06/2007)
As long as Toyota treats Subbie like Ford treats Volvo it will be ok.
If toyota pulls a SAAB on US though then it will be bad.
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eroc 2:34PM (2/12/2007)
nice #1 ryan..."the Foreigners"? thats not subtle at all is it? when you are being xenophobic you can at least be clever. how about the 4runners?
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Vinny 5:31PM (2/06/2007)
If this happens let's hope they don't touch the Subaru Rally team. We all know how successful their F1 team is; even with all that money.
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Jinxy 2:27PM (2/09/2007)
Toyota had a formidable rally cars in the early nineties, and their AWD Celicas were great cars while they lasted. I'd love to see Subaru have Toyota incorporate more AWD into their line up, or maybe Toyota incorporate more beauty into Subaru's.
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phillyj 10:51PM (2/06/2007)
they better not touch subie. toyota sucks now. i don even care if their camry won motor trend's adward. they are bland and their lexus is a joke. and by the way they don't make a single sports car anymore under the toyota badge
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Matt D 5:43PM (2/06/2007)
I have noticed the term foreigner used in reference to Toyota. They may have started in a foreign country, but they , as Ford and all other companies, are multinational. It's like calling the Ford Crown Victoria an American car when in reality its made in Canada, which last I checked, isn't the USA.
The Honda Accord has more American made parts than the Crown Vic which blurs the definition of American made. Look at the mighty Mustang, the V6 version has an engine made in Germany, transmission in France, other parts in America so the us and them mentality isn't that clear anymore nor has it been for a while. Its called the market and people want a decent car and are buying Toyota because of it, certainly not because a Toyota is that inexpensive.
I have owned various brands of cars and don't have a particular brand loyalty, I want a decent car no matter who makes it. What do I drive? a plain ole Ford Focus.
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James Richards 8:40AM (2/07/2007)
I sit and watch all the automotive commercials and remember my Army days when we employed psyops. Those beautiful pictures reflecting the american west, pictures of rough and tumble guys standing next to a pixkup.
In addition, being an amateur radio operator, I listen to those people who scream about vehicles manufactured over seas and the traiters who drive them.
Wake up folks, look at what the facts of life are, Toyota and Honda are the only vehicles built in the USA. All that garbage GM, Ford, and Chrysler are shoving at us to buy their products they are busy building plants in China. Now that I think about it not one union official is racing toward China.
JIM
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mikomi 6:05PM (2/06/2007)
Hmm.. it'll be good for Fuji Heavy Industries and for Toyota.
Acquiring Fuji Heavy Industries (FHI) would really help Toyota expand its portfolio. Aside from Subaru, FHI has Robin, its industrial equipment division (excavators, cranes, etc..), so it would allow Toyota compete against the likes of Mitsubishi, Hyundai, Volvo in that arena. FHI is also involved in the aerospace industry making helicopters, drones, and parts for Boeing, Airbus, and Japan's Defence Agency.
FHI would in general benefit from Toyota's clout and expertise in Just-in-Time production system.
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Jon 6:23PM (2/06/2007)
An STI Corolla? No thanks!
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Steve 6:41PM (2/06/2007)
"13. I sit and watch all the automotive commercials and remember my Army days when we employed psyops. Those beautiful pictures reflecting the american west, pictures of rough and tumble guys standing next to a pixkup.
In addition, being an amateur radio operator, I listen to those people who scream about vehicles manufactured over seas and the traiters who drive them.
Wake up folks, look at what the facts of life are, Toyota and Honda are the only vehicles built in the USA. All that garbage GM, Ford, and Chrysler are shoving at us to buy their products they are busy building plants in China. Now that I think about it not one union official is racing toward China.
JIM"
That's bullcrap. U.S. autocompanies employ 2.5 times more americans per car built and almost FOUR times as many americans, total.
http://www.autoblog.com/2007/01/18/u-s-automakers-still-employ-way-more-americans-than-imports/
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