A report in Japan's Asahi Shimbun newspaper states that Toyota and Fuji Heavy Industries (Subaru's parent) are mulling over the possibility of jointly developing what many have been referring to as the successor to the classic AE86. The entry-level sports car would be branded as a Toyota but would feature a FHI-sourced boxer engine of 2.0 liters or less underhood. As far as pricing, the goal would be to keep the car at ¥2,000,000 or lower. Asahi says that the car would target a 2010 release (not 2008, as previously reported by Japan's Best Car magazine) and that talks between the two entities won't commence in earnest until this Fall.

The Asahi report comes in the wake of the aforementioned Best Car magazine story, which also said Fuji Heavy would factor into the equation, but that a price of ¥1,500,000 was the target. While the two outlets differ on some of the specifics, the basic stories match up, and you know the saying: "Where there's smoke..."

In other news, Asahi reports that Toyota subsidiary Daihatsu will begin supplying its Coo compact wagon (a.k.a. Toyota bB) to Fuji Heavy, and that a Subaru-branded version should go on sale in Japan next summer.

[Source: Asahi Shimbun via Motor Authority]

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