Last April, Toyota and Subaru announced a joint rear-drive sports coupe for 2011, but recent economic struggles and a focus on more efficient vehicles led many to believe that the project could be delayed or even canceled. It now appears this isn't the case. Inside Line is quoting inside PR sources in Japan as saying that the project is still very much alive. The Toyobaru will utilize a new Subaru platform converted for RWD, with power coming from Subaru's 2.0L Boxer engine.

Japanese business paper Nikkei reported in December that the joint project would be delayed until 2012, but spokespeople from both companies say the project is very much on track. Plans for the new vehicle have gone through some changes, though. Under the original plan, Subaru was to build the vehicles at a new factory in Oizumi, Japan. Due to the current economic climate, the new plan is to built the Toyobaru in Subaru's existing Gunma facility.

[Source: Inside Line]

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